Micron Technology (MU) shares tumbled 5.16% in pre-market trading on Thursday, extending losses from the previous day's after-hours session. The sharp decline comes in the wake of U.S. President Donald Trump's announcement of reciprocal tariffs on trading partners, which has sent shockwaves through the semiconductor industry.

President Trump unveiled a plan to impose reciprocal tariffs, including a 34% tariff on China and a 20% tariff on the European Union, as a response to duties on U.S. goods. Additionally, he proposed a 10% baseline tariff on all imports to the United States. This move is expected to have far-reaching implications for the global semiconductor supply chain, potentially increasing costs and disrupting operations for companies like Micron.

Industry experts have expressed concerns about the potential impact of these tariffs on the chip sector. Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors, warned, "For chips, PCs, semiconductors and server manufacturers, these tariffs, if they hold, will be quite disruptive." The semiconductor industry, which relies heavily on global supply chains, is particularly vulnerable to such trade tensions. While some market observers, like Ben Bajarin, CEO and principal analyst at Creative Strategies, noted that part of this impact might have been anticipated, the announcement still triggered a significant selloff in the sector, with Micron being one of the hardest hit among its peers.