- Micron Technology’s (MU) shares rose 5.41% to $72.07 as it plans to impose surcharges on U.S. customers for memory modules and SSDs starting Wednesday, passing on costs from Trump’s 10% tariff and upcoming 11%-50% rates.
- Reuters reports that despite semiconductors being exempt, Micron’s Asian manufacturing in China, Taiwan, and beyond faces tariff pressures, prompting a strategy consistent with its March 21 pledge to shift such costs to customers.
- The move follows Micron’s late March price hikes due to demand and aligns with its response to a trade war sparked by last week’s announcement, which has global firms weighing cost absorption versus customer pass-through.
Micron Technology (MU), a leading chipmaker, is set to impose surcharges on its U.S. customers starting Wednesday for memory modules and solid-state drives (SSDs), a move prompted by President Trump’s new tariffs, according to a Reuters report citing four sources familiar with the matter. With shares climbing 5.41% to $72.07 in early trading on Tuesday, the company is responding to a 10% universal tariff on imports that began Saturday, with escalated reciprocal rates of 11% to 50% targeting specific countries effective at 12:01 a.m. EDT Wednesday. Reuters notes that Micron’s letter to customers clarified that while semiconductors are exempt from last week’s tariff announcement, the levies apply to its critical data storage products used in cars, laptops, and data center servers, reflecting a strategic decision to pass costs downstream rather than absorb them.
Micron’s extensive manufacturing base in Asia – spanning China, Taiwan, Japan, Malaysia, and Singapore – places it squarely in the tariff crossfire, amplifying the impact of Trump’s policies, which have already triggered retaliatory measures from China and raised fears of a global trade war and recession. This surcharge echoes the company’s earlier commitment, voiced during a March 21 post-earnings call, to shift tariff-related costs to customers, a stance reinforced by its late March price increases tied to “un-forecasted demand” for its products. The firm’s ability to adjust pricing highlights its leverage in the semiconductor supply chain, where memory modules and SSDs remain indispensable despite the broader economic uncertainty unleashed by last week’s announcement, which Reuters reports has forced companies worldwide to rethink their cost strategies.
The stock uptick suggests market approval of Micron’s proactive approach, even as its Asian operations face heightened risks from the evolving trade landscape. Trump’s unilateral 10% tariff, now transitioning to higher country-specific rates, underscores the pressure on manufacturers reliant on global supply chains, yet Micron’s focus on passing costs aligns with its prior messaging and recent demand-driven adjustments. This development arrives amid a volatile period following the tariff jolt, with Micron positioning itself to maintain profitability by leaning on its customer base, a tactic that could shape industry responses as trade tensions persist.
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