Micron Technology , a US-based memory chip manufacturer, has reportedly informed its American clients that it will introduce a surcharge on certain products starting Wednesday, April 9, to offset the new tariffs imposed by the US President Donald Trump . According to a report by Reuters, quoting sources familiar with the situation, the company's production facilities are primarily located in Asian countries such as China, Taiwan, Japan, Malaysia, and Singapore.
In a letter to its customers, Micron is said to have clarified that although Trump's recent announcement spared semiconductors, which form a portion of the company's offerings, the tariffs would affect memory modules and solid-state drives (SSDs), the sources revealed. These components, essential for data storage in devices ranging from vehicles to laptops and data center servers, will now carry an additional fee.
The customer notification reportedly aligns with statements made by the company's executives during a post-earnings call on March 21, where they expressed their intention to transfer tariff-related costs to customers in affected sectors. This move follows closely on the heels of Micron's late March announcement to customers about price increases due to unexpected demand surges for its products.
Trump Tariffs and global economies in 'shock'
Trump's tariff declaration has sent shockwaves through global economies, prompting retaliatory measures from China and raising concerns about a potential worldwide trade conflict and economic downturn. Consequently, businesses worldwide are grappling with the decision of whether to absorb these tariffs or pass them on to their customers.
On Saturday, the US customs officials began enforcing Trump's unilateral 10% tariff on imports from numerous countries. Steeper "reciprocal" tariff rates, ranging from 11% to 50% on specific nations, are scheduled to take effect on Wednesday at 12:01 a.m. EDT (0401 GMT).
A senior official at an Asian NAND module producer, who requested anonymity due to media restrictions, told Reuters that their company was adopting a stance similar to Micron's, informing U.S. clients that they must navigate the tariffs independently. "If they're unwilling to cover the taxes, we can't ship the goods. We shouldn't be held responsible for your government's policies," the executive remarked. "At these tax levels, no business can afford to graciously absorb the cost."
In a letter to its customers, Micron is said to have clarified that although Trump's recent announcement spared semiconductors, which form a portion of the company's offerings, the tariffs would affect memory modules and solid-state drives (SSDs), the sources revealed. These components, essential for data storage in devices ranging from vehicles to laptops and data center servers, will now carry an additional fee.
The customer notification reportedly aligns with statements made by the company's executives during a post-earnings call on March 21, where they expressed their intention to transfer tariff-related costs to customers in affected sectors. This move follows closely on the heels of Micron's late March announcement to customers about price increases due to unexpected demand surges for its products.
Trump Tariffs and global economies in 'shock'
Trump's tariff declaration has sent shockwaves through global economies, prompting retaliatory measures from China and raising concerns about a potential worldwide trade conflict and economic downturn. Consequently, businesses worldwide are grappling with the decision of whether to absorb these tariffs or pass them on to their customers.
On Saturday, the US customs officials began enforcing Trump's unilateral 10% tariff on imports from numerous countries. Steeper "reciprocal" tariff rates, ranging from 11% to 50% on specific nations, are scheduled to take effect on Wednesday at 12:01 a.m. EDT (0401 GMT).
A senior official at an Asian NAND module producer, who requested anonymity due to media restrictions, told Reuters that their company was adopting a stance similar to Micron's, informing U.S. clients that they must navigate the tariffs independently. "If they're unwilling to cover the taxes, we can't ship the goods. We shouldn't be held responsible for your government's policies," the executive remarked. "At these tax levels, no business can afford to graciously absorb the cost."
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