MasterCard (MA) shares plunged 5.08% in Friday's trading session, as investors reacted to China's announcement of retaliatory tariffs on U.S. goods, which has intensified concerns about a potential slowdown in consumer spending.

The sharp decline came as China imposed additional tariffs on U.S. products, escalating the ongoing trade war between the world's two largest economies. This move has stoked fears of weakening consumer confidence and reduced credit card spending, directly impacting payment processing giants like MasterCard.

Analysts suggest that the economic uncertainties fueled by the trade war could lead to a significant pullback in consumer expenditure, particularly affecting discretionary purchases often made with credit cards. As a result, payment firms are facing the risk of diminished transaction volumes and potentially lower revenues in the coming quarters.

The selloff in MasterCard's stock was part of a broader decline in the financial sector, with other major credit card companies also experiencing significant drops. American Express fell 4.6%, while Visa slipped 2%. This collective downturn underscores the market's growing apprehension about the impact of escalating trade tensions on the global economy and consumer behavior.