They’re tiny, they’re affordable and if President Trump has his way, they could soon be calling American driveways home.
In a Truth Social post that made the auto world do a double take, Trump said he had approved “TINY CARS” to be built in the U.S., praising the vehicles as “inexpensive, safe, fuel efficient and, quite simply, AMAZING (1).” The vehicles catching his eye are Japan’s kei microcars, pint-size rides that dominate city streets and rural roads across Asia.
Kei cars are roughly 30% shorter than a Toyota Camry and about as wide as a Smart car (2). Yet models like the Honda N-BOX and Nissan Roox start at just over $10,000 in Japan. That’s a big contrast to the U.S., where the average new-car buyer now pays a record $50,080, according to Kelley Blue Book (3).
The price gap is hard to ignore. However, the question is whether American drivers are willing to adjust their expectations along with their cars.
In a country where Texas-sized is the norm, some are still seeking kei cars. In recent years, drivers have been importing older kei cars and trucks independently.
Models with names like the Daihatsu Midget and Suzuki Mighty Boy have built a following, according to Andrew Maxon, founder of the Capital Kei Car Club, which serves the tri-state area of D.C., Maryland and Virginia.
“If they started selling kei cars or kei trucks or something like that in the U.S., if they could maintain the relative size, the relative efficiency, and the relative simplicity, I think they could do it,” he told The Wall Street Journal.
That grassroots interest dovetails with a broader theme Trump has returned to for years: bringing manufacturing back to U.S. soil. Throughout his presidency, Trump repeatedly framed domestic auto production as a jobs issue and a national-security priority, pressuring automakers to expand U.S. assembly and criticizing companies that shifted production overseas.
At a May press conference, Trump reinforced that position, saying automakers operating in the U.S., including Tesla, must manufacture both vehicles and their components domestically (4). The administration has also imposed a 25% tariff on imported vehicles and auto parts.
Some automakers have already begun to reposition. General Motors has announced about $4 billion in investments aimed at moving portions of vehicle production from Mexico to U.S. facilities, pointing to tariff shifts and domestic production incentives (5).
Despite the policy push, automakers have given little indication that tiny cars are on the horizon. Ford declined to comment, and GM said it has no product updates to share, emphasizing that it currently offers six vehicles priced below $30,000.
Read More: Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Toyota and Nissan say they’d be open to introducing smaller vehicles in the U.S. if consumer demand is there. Historically, that’s been the challenge. American drivers have gravitated toward bigger cars and trucks. Light trucks and SUVs accounted for about 84% of new vehicle sales in November, according to TD Economics (6).
At the same time, the cost of car ownership continues to rise. Once loan payments, insurance, fuel and maintenance are factored in, average vehicle costs now exceed $1,000 a month. Buyers are also stretching auto loans to nearly six years on average, a sign of mounting affordability pressure even as demand for larger vehicles remains strong (7).
Automakers have tested that theory before. Just over a decade ago, Toyota’s Scion brand rolled out the pint-size iQ, Daimler’s Smart captured attention with its two-seat Fortwo and Fiat found early success with the compact 500. While they caught consumers’ attention, none managed to reshape the broader U.S. market.
Now, federal regulators may be reopening the door. Transportation Secretary Sean Duffy told CNBC last week that the National Highway Traffic Safety Administration is working to “clear the deck” to allow companies to build kei-size vehicles, which currently don’t meet U.S. crash standards.
“Duffy is working to ensure Americans can afford the car that fits their family’s needs, whether gas-powered or electric,” the spokesperson said.
Whether tiny cars ever make it to U.S. showrooms or not, drivers facing rising vehicle costs don’t have to wait for policy changes to save money.
One of the quickest wins is shopping around for auto insurance. Rates can vary widely between providers, and switching insurers can shave hundreds of dollars a year off premiums.
Buyers can also lower monthly costs by considering a used or certified pre-owned vehicle, which typically comes with a lower sticker price and slower depreciation than buying new. For drivers already locked into expensive financing, refinancing or consolidating high-interest auto loans could help reduce monthly payments, especially if credit scores have improved since the loan was issued.
And for households that don’t need a large vehicle, such as urban drivers or families with multiple cars, downsizing can make a real difference. If kei-style “tiny cars” eventually clear U.S. safety rules, they could offer another lower-cost option for thriftier drivers.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Truth Social (1); Wall Street Journal (2); Kelley Blue Book (3); Reuters (4); GM (5); TD Bank (6); Lending Tree (7).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
