Trump Wants Tiny Cars in America: What to Know

by Andrew Moran, The Epoch Times.com, December 14, 2025

Microcars could be driving on a street near you.

The affordability issue has also extended to the car market. At a time when the average price of a brand-new automobile is almost $50,000, the White House is seeking to offer motorists other affordable options.

Japan may have inspired President Donald Trump’s latest decision to allow U.S. manufacturers to produce tiny automobiles—also known as kei cars.
 

Administration Actions

Trump, speaking at a White House event earlier this month, expressed admiration for tiny cars after seeing them in Japan, comparing these models to the classic Volkswagen Beetle.

“They’re very small, they’re really cute,” Trump told reporters. “And everyone seems to think they’re good, but you’re not allowed to build them.”

He confirmed that he authorized Transportation Secretary Sean Duffy to “immediately approve the production” of these smaller vehicles, which are common throughout Malaysia and South Korea.

“So, you’ll be able to buy,” the president said.

In a Dec. 5 Truth Social post, Trump reiterated the charm of these miniature cars.

“Manufacturers have long wanted to do this, just like they are so successfully built in other countries. They can be propelled by gasoline, electric, or hybrid,” the president wrote.

“These cars of the very near future are inexpensive, safe, fuel efficient and, quite simply, amazing!!! Start building them now!”

In a Dec. 4 interview with CNBC’s “Squawk Box,” Duffy stated that if there is market support for low-cost microcars, he wants to afford U.S. manufacturers the opportunity to satisfy consumer demand.
 

While they might not be functional on freeways, the secretary noted that they could work in urban settings.

“If that’s where you drive, it could be a great solution for you,” he said. “And, by the way, much more affordable than other options that are on the market today.”
 

Terminating CAFE Standards

The president’s comments came as he moved to dismantle his predecessor’s fuel‑economy rules, formally scrapping the Biden administration’s Corporate Average Fuel Economy (CAFE) standards.

The original program required automakers to average 50.4 miles per gallon by 2031, but Trump’s rollback lowers the target to 34.5 miles per gallon over the next six years.

The White House estimates that the change will trim at least $1,000 from sticker prices and deliver about $109 billion in consumer savings over the next five years.
 

Driving a Kei Car

Emerging in the late 1940s and ‘50s, tiny automobiles—kei cars—were created to provide low-cost personal transportation during Japan’s postwar reconstruction. Their compact size suited the era’s infrastructure, when most roads were narrow, winding, and frequently unpaved.

The federal government does not explicitly ban Japanese-style microcars. However, regulatory exclusions effectively prevented automakers from producing these types of vehicles, forcing them to manufacture larger, heavier cars.

Since the 1970s, the United States has implemented modern federal crash-safety and highway-safety standards under the Federal Motor Vehicle Safety Standards. This includes airbags, crash-test performance, side-impact protection, and structural strength.

Kei cars—designed with small dimensions and engines—cannot comply with these standards without adding weight and size, ultimately undermining the very concept.
 

‘Game Changer’ for US Automakers

The president’s public support and policy actions regarding kei cars are a “game changer,” says Lauren Fix, a sector analyst and industry expert at Car Coach Reports.
 

“This is not an overnight process, but the tooling could be shipped to the U.S. and produced within a year,” Fix told The Epoch Times.

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One automaker is already putting the pedal to the metal to see if Americans want smaller cars.

Chrysler parent Stellantis said on Dec. 8 that it will begin offering an all-electric small car called the Fiat Topolino—translated to “little mouse”—in the United States in 2026.

Fiat CEO Olivier François stopped short of providing more information, but he stated in a news release that “more details to come next year.”

“The Fiat Topolino, our small, joyful, colorful car that is now everywhere in Europe, has made several appearances in the U.S. over the past year, including last month at the LA Auto Show, where it’s creating tremendous excitement among consumers,” Francois said in the statement.

“So much so that I’m happy to share that we’ll be bringing the Fiat Topolino to the U.S., with more details to come next year.”

Trump’s enthusiasm for tiny cars, meanwhile, could also lead to savings for families, Fix notes.
 

Affordability Versus Market Demand

In Japan, brand-new gasoline-powered kei cars range from $8,000 to $14,000—electric alternatives can run as high as $27,800.

Stellantis sells the Topolino in Europe for approximately $11,500.

By comparison, the average transaction price of a new automobile in the United States is almost $50,000, according to Cox Automotive’s Kelley Blue Book report, released on Dec. 9.
 

But availability and cost may not be enough to entice motorists to hop into a kei car anytime soon.

Two in five Americans say an SUV or crossover is their primary vehicle, according to YouGov survey data—a preference reflected clearly in the country’s best-selling models.

The U.S. auto market remains dominated by SUVs and pickup trucks—sedans account for a smaller share of domestic sales. In the first seven months of 2025, the top-selling cars have been the Ford F-Series, Chevrolet Silverado, Toyota RAV4, Honda CR-V, and Ram trucks.

If there is market demand, models like Toyota’s Hilux pickup truck or the Fiat Topolino could be hitting American streets in the coming years.

 

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