Micron Technology (MU) shares plummeted 7.18% in pre-market trading on Friday, as the semiconductor sector faced a broad selloff amid escalating trade tensions between the United States and China. The stock's sharp decline comes as part of a larger trend affecting chip manufacturers and related companies.

The semiconductor industry was rattled by news that China is retaliating with a 34% import tariff on all US goods. While semiconductors themselves were exempt from the new tariffs, industry experts warn of potential indirect but substantial challenges. Chris Caso, an analyst at Wolfe Research, explained, "The much more significant impact is, rather, the tariffs that will be imposed on finished goods containing semiconductors, most of which are exported from countries for which very high reciprocal tariffs will be applied, and there are no feasible alternatives for supply."

The selloff wasn't limited to Micron, as other major players in the semiconductor space also experienced significant drops. Advanced Micro Devices fell 4.9%, Qualcomm declined 4.3%, and Broadcom dropped 4.5%. Even industry giant Nvidia saw its shares slide 7.8% on Thursday. The widespread nature of the decline suggests that investors are concerned about the potential impact of the trade tensions on the entire semiconductor supply chain and end markets.