President Trump Said He Just Legalized Cheaper, Smaller ‘Cute’ Kei Cars In America

It’s no secret that kei car enthusiasts have been having a rough time. From tariffs on imported cars to various states waging war against these tiny 25-plus-year-old JDM cars, it’s recently grown harder to import a tiny, sub-660 cc car to America. However, if the White House gets its way, enjoyers of small cars might not have to wait to import them, because the government wants to see them made and sold in America.

On Wednesday, the White House held a press conference where President Donald J. Trump announced less stringent Corporate Average Fuel Economy standards.

However, at roughly 11 minutes and 51 seconds into the livestream, Trump announced some completely unexpected news. Here’s the unedited quote, straight from the President:

One of the other things we’re doing—it’s separate from this meeting but I think everybody here would agree with it—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?” And everyone seems to think good but you’re not allowed to build them, and I’ve authorized the secretary to immediately approve the production of those cars, so you’ll be able to buy the—they really are, some of them are really beautifully actually if you take a look. Honda, some of the Japanese companies do a beautiful job, 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.

Present at the conference was Stellantis CEO Antonio Filosa, who stated, “Thank you very much also for this great news of the kei cars,” to which Secretary of Transportation Sean Duffy responded, “Yes.”

Whew, there is a lot to unpack here: questions about what barriers actually exist for kei cars in America, what changes are actually being made to permit new kei cars on American roads, whether domestic production of kei cars is viable, and, of course, whether this pledge will actually play out as promised. We don’t want to count our chickens before they hatch, so let’s take a look at several of these barriers.

One solid argument against kei cars is that some of them might not be as safe as cars already sold in America. After all, U.S.-market cars must pass unbelted occupant crash testing, a strenuous process that’s kept certain cars away from these shores. The Alpine A110, for example. In addition, Federal Motor Vehicle Safety Standards deviate from the UNECE standards most of the world uses, so some market-specific changes would be necessary. Headlights would need to be changed, amber front retroreflectors would need to be added, that sort of stuff. While the Mitsubishi i-MiEV proved it’s technically possible to sell a modified kei-class car in North America, there are a few reasons why we haven’t seen many of them sold new in America.

Firstly, let’s talk about the EPA’s footprint rule for a second. From 2008, Corporate Average Fuel Economy standards included a modifier based on a vehicle’s footprint, calculated using its wheelbase and track width. Under this structure, larger cars could emit more pollutants while smaller cars had to emit fewer pollutants. For example, in 2011, cars with a footprint of less than 40 square-feet would’ve needed to achieve a CAFE rating of 31.2 MPG, while cars with a footprint above 55 square feet would’ve needed to achieve 24 MPG. Those numbers don’t seem like a huge deal, except that at the time, the proposed standards for 2025 were 61.1 MPG and 45.6 MPG, respectively. While the CAFE MPG and the number on a window sticker aren’t the same, the footprint rule makes it somewhat punitive to sell small cars in America.

Reading between the lines, it certainly seems like this proposal would legalize U.S.-built kei cars, and that’s where another potential sticking point comes in. When we’re talking about truly inexpensive cars at the bottom of the market, labor costs make up a considerable portion of their wholesale prices. If kei cars were to be built in America, they might not be as cheap as some people hope. At the same time, who knows if imported kei cars will be legal? Given current pricing plus tariffs, an $11,390 Honda N-One could be Nissan Versa money if it were to land in America.

Then we get to the final question: Would the general public even want kei cars in America? While inexpensive cars have seen a resurgence in popularity, kei cars are an order of magnitude smaller than even a Nissan Versa. We’re talking 11.2-foot-long cars with engines displacing less than one liter and zero-to-60 MPH acceleration times usually in the double-digits. They’re economical and inexpensive, but a used Camry is physically a whole lot more car. It can cruise on Texas’s 80 MPH toll road without breaking a sweat and comfortably seat three adults across the rear bench, useful stuff in a nation of long commutes, high-speed roads, and relatively inexpensive fuel. While a domestically-made kei truck would be useful for urban deliveries and light farm work, kei-class passenger cars are a harder sell.

While it’s certainly interesting to hear the White House paving the way for U.S.-market kei cars, the battle to bring truly small cars back to America has only just begun.

It’s currently not clear what barriers would need to be lowered or have been earmarked for alteration in order to sell new kei cars in America, and we still don’t know if consumer demand truly exists outside of cities and some commercial uses. Needless to say, we’ve reached out to Honda and Toyota for comment and will update you should we hear further developments.

Top graphic image: Honda, DepositPhotos.com