Visa (V) shares plummeted 5.03% in Friday's trading session, as investors reacted to China's retaliatory tariffs on U.S. goods and growing concerns about a potential slowdown in consumer spending. The escalating trade war between the world's two largest economies has sent shockwaves through the financial sector, with credit card companies bearing the brunt of the market's anxiety.

China's announcement of additional tariffs on U.S. products has intensified fears of an economic slowdown, which could directly impact consumer confidence and spending habits. As a leading payment processor, Visa's revenue is closely tied to transaction volumes, making it particularly vulnerable to any pullback in consumer expenditure. The company's stock decline mirrors similar drops seen by its peers, with American Express and Mastercard also experiencing significant losses in early trading.

Adding to the sector's woes are concerns about potential unconventional measures the Trump administration might employ in its trade strategy. Analysts speculate that the U.S. could leverage its financial dominance, potentially affecting dollar funding or even pressuring payment giants like Visa to restrict services in certain markets. While such extreme measures remain hypothetical, the mere possibility has contributed to the negative sentiment surrounding financial stocks. As the trade dispute continues to evolve, investors will be closely monitoring its impact on consumer behavior and any potential regulatory responses that could affect the payments industry.