Micron Technology (MU) shares plunged 6.74% in intraday trading on Tuesday, reversing earlier gains, as investors reassessed the impact of the company's decision to impose tariff-related surcharges on some of its products.

Initially, Micron's stock had risen over 6% in pre-market trading following reports that the company would levy a surcharge on several products starting April 9 in response to new US tariffs. The move was seen as a proactive step to offset potential financial impacts from the tariffs. However, as the trading day progressed, sentiment quickly soured.

Market analysts suggest that investors may have become concerned about potential negative consequences of the surcharge decision. There are fears that the additional costs could hurt Micron's competitiveness or lead to reduced demand for its products, particularly in the price-sensitive memory and storage markets. The semiconductor industry is already facing challenges due to ongoing trade tensions and global economic uncertainties.

The sharp reversal in Micron's stock price highlights the volatile nature of the semiconductor sector and the complex dynamics of international trade policies. As the situation continues to evolve, investors will be closely monitoring how Micron's pricing strategy impacts its market position and financial performance in the coming quarters.