President Donald Trump has told federal auto regulators to clear the path for the production and sale of kei vehicles in America, following his recent trip to Asia, where he saw pint-sized cars flooding the streets.
During a White House announcement on Wednesday, where he rolled back Biden-era fuel economy mandates, Trump described the cars as reminiscent of the classic Volkswagen Beetle.
“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 said in a clip reposted by X user Acyn, while he was flanked by Transportation Secretary Sean Duffy and auto executives from Ford and Stellantis.
“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 … 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,” the President added.
The directive is inspired by the affordability and efficiency of kei cars, known in Japan as kei-jidosha, which adhere to strict size and engine power limits.
Generally, Kei cars are no longer than 3.4 meters, have engines capped at 660cc, and are designed for fuel efficiency with up to 60 miles per gallon.
In Asia, these vehicles, produced by makers like Honda, Toyota, and Suzuki, typically retail for $5,000 to $15,000 and come in styles ranging from compact trucks and vans to quirky SUVs and sports cars.
One particular vehicle, the Toyota Hilux, has some car-lovers drooling at the prospect of the affordable economy truck hitting the market in America.
“The Toyota Hilux Champ has the potential to revive small American farms by being an affordable and capable truck. The type of farms with no need for a $90K half ton truck,” wrote X user Austin Adams.
Historically, new kei models have been banned from American roads by National Highway Traffic Safety Administration crash standards, Environmental Protection Agency emissions rules, and a 25% tariff on imported light trucks dating back to the 1960s “Chicken Tax.”
While used kei vehicles over 25 years old can be imported under federal exemption loopholes – and are already street-legal in Texas thanks to a landmark state law earlier this year, previously detailed in a report by The Dallas Express – domestic production has remained off-limits.
Trump’s new order will now allegedly waive these barriers to encourage the manufacturing of niche-type vehicles on home turf.
“We have cleared the deck so they can make them in America and sell them in America,” Duffy said during Wednesday’s briefing.
Senate Bill 1816 was passed earlier this year, the initial bill that allowed Texans to start seeing legally authorized Kei trucks on the streets throughout 2025.
Under SB 1816, Texas joined 28 other states in permitting the vehicles, provided they meet federal age exemptions and aren’t classified as off-road or golf-cart alternatives. The bipartisan bill sailed through both legislative chambers easily without much opposition, taking effect right away – unlike slower rollouts in states like Colorado.
For Texas drivers, where sprawling highways coexist with congested cities like Houston and Dallas, kei cars could fill a void left by oversized pickups and SUVs. However, regardless of the social media buzz among Americans eyeing the Hilux or the Suzuki Alto, for example, there are lingering criticisms of the smaller cars and their capabilities.
Some safety advocates have raised concerns that kei cars’ lightweight frames – often under 2,000 pounds – may not hold up in collisions with larger trucks and SUVS that are popular in America. Kei cars also do not generally pass certain U.S. unbelted crash tests, as they are designed for narrower streets and lower speeds in crowded city streets like Tokyo.
One report from the Insurance Institute of Highway Safety, titled “Low-speed vehicles and minitrucks shouldn’t share busy public roads with regular traffic,” is pretty scathing of the smaller car configurations’ overall performance and safety ratings, especially when compared to American traffic.
Bloomberg Intelligence senior auto analyst Tatsuo Yoshida highlighted some economic hurdles as well.
“The reason Japanese carmakers don’t make or sell kei cars in the U.S. is business feasibility,” Yoshida said. “Pricing and costs don’t match with the expectations in the American market, where consumers prioritize size and power over compactness.”
Even as Trump promotes the “cute” cars’ potential, some big questions still linger: Will exemptions require U.S.-specific reinforcements? Could domestic builders like Ford or Chevrolet pivot quickly to kei production?
And maybe most importantly – do Americans even want them?