Visa (V) shares plummeted 5.01% in intraday trading on Thursday, as the escalating trade war between the United States and China sent shockwaves through the credit card sector. The steep decline comes amid broader market concerns about the impact of rising tariffs on consumer spending and economic growth.

The sell-off in Visa stock was triggered by President Donald Trump's decision to increase tariffs on China to 125% from 104%, despite temporarily lowering duties on dozens of other countries. This move has reignited fears of a full-blown trade war between the world's two largest economies, potentially dampening consumer confidence and curbing credit card spending.

Visa's peers in the credit card industry also felt the heat, with American Express (AXP) down 2.8% and Mastercard (MA) slipping 2.2%. The sector-wide decline reflects investors' growing unease about the potential long-term effects of the trade dispute on consumer behavior and cross-border transactions. Since President Trump's initial tariff announcement on April 2, Visa has seen its stock fall by 9.6%, while American Express and Mastercard have dropped 15.1% and 10.5% respectively, highlighting the vulnerability of financial services stocks to trade-related uncertainties.