US PresidentDonald Trump has stunned car enthusiasts when he told the media that his government would consider allowing small, fuel-efficient “kei” cars into the country from Japan.
As the Trump administration seeks to roll back emissions laws – a step backwards from those put in place under previous President Biden – the plan to allow kei cars into the US seemingly came out of nowhere.
“They’re really small, they’re really cute, and I asked, ‘How would that work in this country?'” President Trump told reporters outside the White House on Wednesday, the newspaper reported Daily Mail.
“But we’re not allowed to make them in this country, and I think you’re going to do very well with these cars, so we’re going to approve these cars,” he added, seeming to indicate that he also supports making these vehicles in the United States.
With Daily Sparkz you can save thousands on a new car. Click Here to get a great deal.
While kei cars have become popular used imports in the United States, sales are banned in Iowa, Maryland, Nevada, New Mexico, Oregon and Vermont.
The president’s comments appeared to surprise Transportation Minister Sean Duffy, who said he was “making everything clear” for approval, but said in separate media interviews that they still wouldn’t necessarily fit the market.
“Are they going to work on the highways? Probably not,” he said CNBCas reported by the Daily Mail.
The call contrasts with previous statements from President Trump, who earlier this year challenged Japan over why it was no longer selling US-made vehicles – reflecting the sentiment of his previous administration.
In August 2025, President Trump called for more U.S. trucks to be sold in Japan, but the Japanese government said larger vehicles were not popular with buyers there.
The differences between the most popular vehicles in the U.S. — full-size pickups like the Ford F-150 and Chevrolet Silverado — and kei cars couldn’t be greater.
Kei cars are cheap, small, low-powered city cars with engine size limited to 660 cc and designed to tackle narrow city streets. The size and performance restrictions bring Japanese tax advantages.
Automakers in Europe have also been talking to automakers there about developing a similarly low-cost, highly fuel-efficient mini-car segment for buyers there.
Recently, Chinese car giant BYD announced that it would produce a battery-electric kei car, the Racco, to establish itself in Japan.
In Australia, Honda has confirmed it will launch the Super-One electric kei car here in the second half of 2025.
President Trump intends to impose a 15 percent import tariff on Japanese goods, which would be applied to kei cars unless a special exemption is granted.
The Japan Times reported on December 3, 2025 that U.S. subsidiaries of nine Japanese companies would sue the U.S. government, challenging the legality of the tariffs and demanding a full refund of duties paid to date.
President Trump’s comments also came just hours before his meeting with U.S. automakers that had plans to ease emissions regulations.
The US Department of Transportation and President Trump announced that the previously world-leading CAFE (Corporate Average Fuel Economy) standards will be weakened.
Instead of requiring automakers to meet an average fuel consumption of 50.4 mpg (approximately 4.7 L/100 km) by 2031, the reduced targets allow them to achieve an average fuel consumption of 34.5 mpg (approximately 6.82 L/100 km).
Savings for US drivers under the higher amount proposed under former President Joe Biden were estimated at US$23 million (AU$34.75 million) – with that saving now expected to be lost.
The revised targets have not yet come into effect as the government proposal is scheduled for November, allowing input and feedback from stakeholders.
