Micron Technology, a major U.S. memory chipmaker, has informed American customers that it will impose a surcharge on certain products starting Wednesday, in response to new tariffs introduced by President Donald Trump.
Although semiconductors were exempt from the recent tariff announcement, products such as memory modules and solid-state drives (SSDs) — key components used in devices like cars, laptops, and data center servers — are affected.
Micron’s manufacturing operations are primarily located in Asia, including countries like China, Taiwan, Japan, Malaysia, and Singapore, making the company particularly vulnerable to international trade shifts, Reuters news report said.
Micron communicated the changes via a letter to customers, indicating that the added costs from tariffs would be passed on rather than absorbed. This aligns with remarks made by Micron executives during a post-earnings call in March, where they disclosed plans to pass along tariff-related costs.
Furthermore, Micron has already raised prices in late March, citing unexpected increases in product demand. The tariffs have created global uncertainty, with Donald Trump’s move prompting retaliatory measures from countries like China and heightening concerns over a potential trade war and economic downturn.
Beginning Saturday, U.S. customs started collecting a 10 percent tariff on a broad range of imports, with increased rates of up to 50 percent for some nations set to begin Wednesday. The abrupt shift in trade policy has pushed companies worldwide to decide whether to absorb the costs or pass them on to customers.
An executive from an Asian NAND module manufacturer revealed that their company, like Micron, has informed U.S. customers that they must take responsibility for the added taxes, emphasizing that the burden cannot be unilaterally absorbed by suppliers.
The executive stated that companies could not be held accountable for political decisions made by foreign governments, especially when faced with steep tax increases. The sentiment reflects a broader trend among manufacturers grappling with rising trade barriers and the implications for pricing and global supply chains.
InfotechLead.com News Desk
