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Home Companies Large-Cap
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Micron to Add Surcharge on Memory Products Amid New U.S. Tariffs

byLiliana Vida
April 8, 2025
in Large-Cap, Semiconductors
Reading Time: 2 mins read
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Trump’s latest trade measures prompt Micron to pass on costs to customers starting Wednesday

Micron Technology (NASDAQ: MU) has informed its U.S. customers that it will impose a surcharge on certain products starting Wednesday, citing the impact of new tariffs introduced by President Donald Trump, according to four sources familiar with the matter.

While semiconductors were exempted from the tariff list announced last week, Micron clarified in a letter to clients that the duties apply to memory modules and solid-state drives (SSDs) — key components in devices ranging from laptops and servers to cars.

Micron manufactures most of its products in Asia, including China, Taiwan, Japan, Malaysia, and Singapore, making its supply chain particularly vulnerable to the sweeping tariffs. U.S. customs agents began collecting a 10% tariff on many imports Saturday, with additional country-specific rates of up to 50% scheduled to kick in on Wednesday.

The move aligns with comments Micron executives made during a March 21 earnings call, when they said they would pass on additional costs tied to tariffs directly to customers. Just weeks ago, the company had also announced price increases due to a spike in “un-forecasted demand.”

The White House’s decision to impose unilateral tariffs has sparked global backlash and raised concerns over a looming trade war, with companies now facing a tough choice: absorb the cost or pass it on.

Micron’s response is echoed by other memory product suppliers in Asia, who say they cannot afford to shoulder the costs of the tariffs. “If they don’t want to bear the taxes, we cannot ship the products,” said one executive. “With this kind of tax rate, no company can generously say, ‘I’ll take on the burden.’”

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