Visa (V) stock surged 6.93% in intraday trading, reversing its recent downtrend, after U.S. President Donald Trump announced a 90-day pause on many of his new tariffs that were unveiled last week. This move has provided a significant boost to U.S. card companies, which have been under pressure due to ongoing trade tensions between the United States and China.

The announcement comes as a relief for payment processors like Visa, Mastercard, and American Express, which have been facing the risk of weak credit card spending due to economic uncertainties stoked by the trade war. Consumer confidence, a key driver for credit card usage, was expected to take a hit from the escalating trade tensions. The 90-day pause is seen as a positive development that could help stabilize consumer sentiment and spending patterns.

However, investors should note that while this news has provided a short-term boost, President Trump also mentioned that he would raise the tariff on Chinese imports to 125% from the current 104% level. This indicates that trade tensions are far from over, and the market may continue to experience volatility as negotiations between the U.S. and China progress. Visa and other financial transaction services companies will likely remain sensitive to developments in the ongoing trade discussions.