Trump's tariffs: Micron said to raise prices on certain products

Micron Technology, a US-based memory chipmaker, has announced plans to impose a surcharge on certain products starting Apr. 9, 2025.

This decision arises from new tariffs introduced by the US government, according to sources familiar with the matter.

While semiconductors, a major part of Micron’s offerings, are exempt from the tariffs, memory modules and solid-state drives (SSDs) are not.

These products are widely used in laptops, vehicles, and data center servers and will now incur additional charges.

The company communicated its plans in a letter to customers, following a post-earnings call on Mar. 21. During the call, executives indicated they would pass on tariff-related costs.

Micron has not yet provided further comments.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Semiconductor tariffs have a mixed historical track record

The Micron surcharge echoes the 1987 Reagan-era tariffs on Japanese semiconductors that were similarly designed to protect U.S. chipmakers like Micron.

Those historical tariffs initially raised prices and benefited U.S. manufacturers, but ultimately caused more harm than good to broader U.S. industrial interests as companies shifted focus from innovation to lobbying for protection 1.

While some semiconductor companies prospered after the 1980s tariffs, many industry giants from that era disappeared, suggesting that innovation rather than protectionism determined long-term success 1.

Studies on more recent tariffs indicate they often backfire economically. One analysis predicted that steel and aluminum tariffs alone could cost over 400,000 U.S. jobs, with 19,000 in fabricated metals and related manufacturing sectors 2.

The semiconductor industry’s global transformation since then, from U.S. dominance (70% of global production in 1990) to just 12% by 2020, demonstrates how complex industry shifts have been despite periodic tariff interventions 3.

2️⃣ Selective tariffs create uneven impacts across the tech ecosystem

Micron’s situation highlights a critical distinction in the current tariff structure. While basic semiconductors are exempt, memory modules and SSDs face tariffs despite being essential components in the same supply chain 4.