Micron Technology (MU) saw its shares plummet 5.01% in after-hours trading on Wednesday, following a broader selloff in semiconductor stocks. The decline came in response to U.S. President Donald Trump's announcement of reciprocal tariffs on trading partners, which sent shockwaves through the tech sector.

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 news triggered a significant reaction in the chip industry, with several major players experiencing notable declines in extended trading.

Micron Technology was among the hardest hit, with its stock falling 4% to $85.05 in initial after-hours reports, before extending losses to the reported 5.01% drop. Other semiconductor giants also felt the impact, with Nvidia down 3.2%, Broadcom falling 4.8%, and Intel declining 1.7% in after-hours trading.

Industry experts have weighed in on the potential consequences of these tariffs. 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." However, Ben Bajarin, CEO and principal analyst at Creative Strategies, noted that while stocks are down on the news, the reaction wasn't as severe as some had anticipated, suggesting that the market may have partially priced in this risk.