Trump stuns auto industry with tiny-car move that promises ultra-cheap wheels - but serious safety risks
A car meant for Tokyo's narrow streets might start buzzing down American streets.
President Donald Trump says he's moving to legalize Japan's beloved kei cars — the tiny, boxy, almost toy-like vans, trucks, and coupes that have a cult following overseas.
And he wants US automakers to start building them here.
'They're very small, they're really cute, and I said, "How would that do in this country?"' Trump told reporters outside the White House on Wednesday.
'But we're not allowed to make them in this country, and I think you're gonna do very well with those cars, so we're gonna approve those cars.'
The cars — which Trump reportedly fell in love with during his recent trip to Japan — are currently banned by federal transport regulators over safety concerns.
News of the U-turn blindsided much of the auto industry and dropped into the middle of Trump's broader push to slash vehicle costs.
New-car prices have soared to an average $50,000 — up 30 percent since 2019 — and insurance rates have jumped even faster.
President Trump said he is trying to get US auto manufacturers to build kei cars. It's his latest effort to bring down the cost of a new vehicle
Kei cars - historically built for the Japanese highway system, often have right-handed steering wheels, minimal storage space, and shoulder-to-shoulder seating
Small kei cars line the narrow streets of Japan, where drivers don't travel as much as Americans in a full year. President Trump was reportedly enamored with the vehicle during a recent trip
'Kei' translates loosely to 'lightweight' or 'value.'
The cars are engineered around the size constraint: engines are tucked under the seats, passengers sit shoulder-to-shoulder, there's barely any crash structure, and the dimensions are small enough to make today's Mini Cooper look swollen.
That's why the National Highway Traffic Safety Administration has long banned new kei cars in the US for safety reasons.
They simply don't meet crash standards, especially in a country where America's best-selling vehicle weighs anywhere from 4,000 and 5,540 pounds.
Safety concerns haven't stopped car enthusiasts and social media personalities.
A federal loophole lets drivers import any foreign car after its 25th birthday. That has turned the kei market into an online bargain-bin treasure hunt.
Buyers ship in tiny 1990s vans and pickups for a few thousand dollars. In many cases, they spend more on shipping than on the car itself.
Still, the math beats almost anything on a dealer lot, where drivers are agreeing to an average of $6,000 down and $750 per month.
New kei cars are illegal in the states, per NHTSA rules. But some enthusiasts have found a loophole in the rules, including buying cars built in the 1990s
Kei cars have a footprint the size of a Smart car, but have seating for anywhere from two to six adults, depending on the model
The average American car weighs over 4,000 pounds. America's best-selling vehicle, the Ford F-150, weighs up to 5,540 pounds
Transportation Secretary Sean Duffy says he's now 'clearing the deck' for federal approval — but even he admits the cars won't survive on US highways.
'Are they going to work on the freeways? Probably not,' he told CNBC during a Thursday interview.
And since Trump hasn't explained how federal rules would mesh with existing state laws, legal gray zones loom large.
So far, six states — Iowa, Maryland, Nevada, New Mexico, Oregon, and Vermont — outright ban the cars.
Meanwhile, dozens of other states restrict how and where the vehicles can be driven. Alabama, for example, caps kei cars at 25 miles per hour.
Even if the cars roll out of US factories, automotive experts are also not confident in the market fit in the US.
American automakers haven't built a small car in years. Right now, no Detroit Big Three brand builds a mass-market sedan or compact car.
A few hours before the kei-car comments, Trump held a public meeting with executives from GM, Ford, and Stellantis to announce he was killing federal fuel-efficiency rules that have been in place for half a century.
Shoppers have been struggling with auto payments that have ballooned to an average of $750 a month. This year, more drivers are collapsing into delinquency because of the cost issues
The administration argues that ending the standards will knock about $900 off upfront vehicle costs.
But those same standards also meant drivers spent far less on gas over the life of their cars. One estimate pegged the savings at more than $9,000.
'Loosening fuel-efficiency rules may look like a win at first glance,' Sam Taylor, a business analyst at LLC.org, told the Daily Mail.
'But the hidden cost is what we spend at the pump.'
Put together, it's another whiplash moment for the industry: America may soon kill long-standing efficiency rules — and simultaneously open the door to its smallest, least-efficient-to-crash tiny imports ever.
