On Dec. 3, the Trump administration held a press conference announcing a shift in fuel economy regulations. However, if you were paying attention, Trump also basically said he’d like to see kei cars offered in the U.S. While he didn’t specifically call out the term “kei” (pronounced “kay”), he was clearly referring to them.
Trump’s Small Car Announcement
Trump, who recently visited Japan, said, “If you go to Japan where I just left, and if you go to South Korea, and Malaysia, and other countries, they have a very small car — sort of like the Beetle used to be with the Volkswagen — they’re very small, they’re really cute, and I said ‘How would that do in this country?’”
Trump continued saying some of these small cars “are really beautiful actually,” and specifically called out Honda and Toyota as doing a good job with them. He continued, “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.”
He authorized Transportation Secretary Sean Duffy to immediately approve the production of small cars for people to buy.
But the President’s statements, of course, bring up a wide host of questions, most of which are around current vehicle regulations. So, are we about to be inundated with microcars?
What Is a Kei Car & How Big Are They?
Let’s assume Trump was talking about the Japanese kei cars. Short for kei-jidōsha (“light vehicle”), kei cars have strict size and engine displacement rules in Japan. Owners get tax breaks, reduced insurance, and lower ownership costs. These are very tiny and infinitesimally small compared to U.S. vehicle standards. They can’t be more than 133.9 inches long, 58.3 inches wide, and 78.7 inches tall.
They also can’t have engines larger than 660cc and no more than 63 horsepower. By comparison, a 2025 MINI Cooper 2 Door, one of the smallest cars sold in the U.S., is 152.6 inches long, 68.7 inches wide (without mirrors), and 56.4 inches tall. It also makes at least 161 horsepower.
What About Safety?
The Lilliputian kei vehicle would likely have a hard time meeting existing U.S. federal crash safety standards.
Some kei vehicles, such as kei trucks, are also forward control without a hood. This means you’re sitting on top of the engine and front wheels with the steering wheel forward of the front axles.
It’s likely that crash test standards would need to be revised for these small vehicles to be sold in the U.S. Then again, maybe there’d be exclusions, and they wouldn’t need to meet safety standards, much like motorcycles. Maybe there’d be a different safety standard for them all together.
But in their current form, most kei cars wouldn’t conform to our Federal Motor Vehicle Safety Standards, or FMVSS, a standard that all new cars sold in the U.S. must meet.
Regulations Would Need to Change
For a kei car to meet FMVSS, they’d have to change the FMVSS rules. As of now, you can import a kei vehicle so long as it’s 25 years old. However, several states won’t allow them to be registered.
Remember: Registration is a state issue, not a federal one. So, if the Trump administration says kei cars are OK, states may have the right to still prohibit them from public roads unless they conform to FMVSS. Really, this is all speculation unless the administration clarifies Trump’s statements from Dec. 3.
Who’d Make These Small Cars?
Trump specifically called out Honda and Toyota for their small cars in Asia. Would the President expect Honda and Toyota to manufacture kei trucks in the U.S., or would they be imported (which would likely require tariffs)? Adding a tariff would definitely increase their price.
None of the U.S. auto manufacturers are currently making kei cars on U.S. soil, either, and there’d need to be significant investments in design, engineering, and tooling for them to do so.
Do Americans Even Want Small Cars?
While tiny vehicles are commonplace in Europe and Asia, small cars have never been very popular stateside. The U.S. is a very large country. We have lots of space and speed limits of 80+ mph in places. Would new tiny cars even sell?
According to goodcarbadcar.net, in 2021, compact cars accounted for only 8.2% of new car sales, down from 9.3% in 2016. And keep in mind, a compact car in the U.S. is a Honda Civic, Toyota Corolla, Hyundai Elantra, or a Subaru Impreza. These are far bigger than a Japanese kei car.
Whenever the economy takes a turn for the worse, automakers have historically offered up less-expensive, smaller rides. I was in a Ford Motor Company press meeting in 2009 when a representative declared “small cars were the future.” Well, they were … until the economy picked up and everyone started buying big trucks and SUVs again.
There has been movements in many states to legalize the 25 year old kei cars/trucks, such as in Oregon. There’s no doubt the little kei trucks, which often have payload capacities similar to full-size trucks, could be helpful for farmers, ranchers, and small businesses. But would people buy them new? Would they be willing to trade safety for affordability?
Also, should the administration simply legalize UTVs while we’re at it? These are already in the U.S., and only road-legal in a handful of places.
A Lot of Clarification Is Needed
Clearly, Trump’s small car statement makes more questions than it gives answers. If small cars, such as kei vehicles, do appear, it’ll likely trigger a landslide of regulation changes, something the Trump administration has a propensity for. However, it could also offer a more affordable option to car buyers at a time when the average MSRP for a car is around $50,000.
Don’t expect to see anything soon; there are heaps of questions and mountains of policies to consider before we start seeing these runabouts on our roads.
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