A notable bank analyst said on Monday that the reciprocal tariff imposed by United States President Donald Trump and the ban on purchases during the midterm elections resulted in a 16 percent slump in car sales last month.

Based on the joint report of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA), April’s auto sales totaled 33,580, 16 percent lower than the 40,336 sales in March 2025.

April 2025 sales were also 10 percent lower than the 37,314 sales in April 2024.

However, the industry’s year-to-date total sales of 150,654 units improved by 2.5 percent compared to 146,920 units sold in April 2024.

Further, April 2025’s total passenger car sales of 30,830 units suffered a 19.5 percent slump compared to the 38,280 sales made over the same period last year.

“The latest year-on-year and month-on-month decline in local vehicle sales in April 2025 may be partly attributed to increased US/global/local market volatility during the month, when, on 2 April 2025, Trump announced the reciprocal tariffs/Liberation Day, somewhat weighed on sentiment by consumers/households, businesses, and other institutions, as higher US import tariffs/reciprocal tariffs could slow down global trade (especially exports), investments (new and expansion projects), employment, and overall economic growth worldwide, which could indirectly slow down the local economy as well,” Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said.

Peculiar factor

Further, he said an election ban on some government spending, including for some vehicle purchases, before the midterm elections, could also be a peculiar factor for this year that could have also partly weighed on vehicle sales in April 2025, but would resume after the 12 May, midterm elections.

For its part, CAMPI president Rommel Gutierrez said: “While the overall market trajectory remains positive, the recent slowdown may be attributed to seasonal factors, economic conditions, or evolving consumer demands. Industry leaders continue to monitor market trends and expect further developments in the months ahead.”