Yesterday, former President Trump revealed intentions to relax ambitious fuel-economy standards that automakers are expected to fulfill in the near future. In the same speech, he expressed his affection for “small … cute” cars he spotted in Japan, suggesting “prepare for those cars,” because his administration is “making it easier” for them to be manufactured here. Hold on, what?
Today, numerous headlines emerged about kei cars—the ultra-compact, affordable, low-powered vehicles that Mr. Trump was undoubtedly referencing—entering the American market due to the statements made in the speech. While I genuinely appreciate microcars and anything adorable, I’m quite certain that nothing will materialize from what we heard.
Here’s the specific excerpt from yesterday’s address that I’m alluding to.
President Trump:
“If you visit Japan, where I just came from, and you go to South Korea, and other nations, they have a very small automobile, somewhat akin to what the Beetle was with Volkswagen, they’re very tiny, really charming, and I questioned, ‘How would that perform in this country?’ Everyone seems to believe ‘good,’ yet they’re not permitted to produce them, and I’ve directed the Secretary to promptly authorize the manufacturing of those vehicles. Some of the Japanese companies create amazing products, but we’re not permitted to create them in this country.”
Transportation Secretary Sean Duffy then interjected:
“He instructed me to eliminate barriers on this, which we have done, so if Toyota or any other firm intends to produce smaller, more cost-effective cars, fuel-efficient, we have cleared the way for them to manufacture and market those in America.”
The term “kei car” was not directly mentioned—it appeared that Stellantis CEO Antonio Filosa implied it at one point, but I suspect it was an unintentional slip misrepresented by automated captions. Regardless, Secretary Duffy’s remark didn’t quite add up. The only legitimate regulations preventing ultra-compact cars from being constructed in the U.S. are crash-safety standards, which nearly all kei-sized vehicles currently in existence would fail to meet.
The Trump Administration appears to favor the removal of consumer protections, so perhaps today’s stringent safety standards aren’t as significant an obstacle, but they still exist. It’s not as if a kei-car switch was flipped overnight and suddenly Toyota will begin producing a Pixis variant at one of its domestic factories.
However, even if crash testing were abolished and airbag requirements were eliminated, various factors are keeping kei cars, as we know and cherish them, from large-scale production for the American marketplace.
Firstly, it would take an excessive amount of time for prices to appeal sufficiently to many people for setting up factories to be feasible. Americans have ultimately rebuffed every ultra-compact, budget-friendly car introduced to the market in the last few decades—Smart, Toyota iQ, even the extremely practical Honda Fit was discontinued. Heck, Ford doesn’t even manufacture sedans anymore, let alone low-MSRP hatchbacks like the Fiesta.
So, what, people will purchase them because it’s all they can manage? No, initially, they will continue buying used F-150s (or, as Mr. Trump refers to it, “the Ford 150,”) because they’ll still be less expensive than whatever new Ameri-kei car would debut.
It’s not like Americans usually confine their car shopping to what they can afford, either. We’ll never witness car prices drop, but we will definitely see loan durations and lease rates increase in the absence of regulation. The automotive industry (indeed, every industry) focuses on transitioning to recurring revenue models. From a marketing perspective, it would be far simpler to ensnare people into generational debt for a new high-trim pickup truck, or to enroll them in a pay-per-mile subscription, rather than getting them into a Trum-bant microcar.
Believe me, I would be thrilled to see Suzuki Jimny and Honda Beat-type vehicles available in America just as much as the next car enthusiast, but it’s not going to occur. One of the most frustrating aspects of this is that Mr. Trump genuinely could significantly and immediately lower the cost of car ownership in America almost overnight by simply lifting the tariffs he imposed on vehicles and on the components to manufacture and maintain them. Although, somehow, I’m not optimistic about that happening either.
Have a story tip? Want to tell me how incorrect I am? My email is [email protected].
**The Misinterpretation of Trump’s Proposal to Allow Kei Cars in the US**
In recent years, the automotive scene in the United States has experienced various discussions regarding the potential introduction of kei cars—small, lightweight vehicles favored in Japan for their compact dimensions and fuel efficiency. Former President Donald Trump’s proposition to permit kei cars in the U.S. has ignited considerable debate, often leading to misconceptions and mischaracterizations of his motives and the ramifications of such a decision.
**Defining Kei Cars**
Kei cars, or “kei jidosha,” constitute a category of vehicles in Japan defined by particular size and engine displacement regulations. Generally, these vehicles measure no more than 3.4 meters (11.2 feet) and feature engines that do not exceed 660cc. Their compact nature renders them ideal for urban settings, where parking is scarce and fuel efficiency is paramount. In Japan, kei cars enjoy lower taxes and insurance premiums, making them an appealing choice for numerous consumers.
**Overview of Trump’s Proposal**
Throughout his presidency, Trump proposed various initiatives aimed at deregulation and encouraging American manufacturing. His suggestion to authorize kei cars was positioned as a means to provide consumers with more budget-friendly vehicle choices and to invigorate the automotive market. This proposal sought to permit these small vehicles to be imported and sold in the U.S., potentially attracting environmentally conscious buyers and those in search of economical transportation.
**Mischaracterization of the Proposal**
The conversation surrounding Trump’s proposal has frequently been obscured by mischaracterization. Opponents have framed the initiative as one that would jeopardize American automotive production, asserting that it would inundate the market with foreign vehicles, disadvantaging domestic manufacturers. This viewpoint disregards several crucial elements:
1. **Consumer Choice**: Legalizing kei cars would not necessarily displace American-made vehicles but rather broaden consumer options. Many consumers are seeking affordable, efficient alternatives, especially in urban areas where larger cars may be impractical.
2. **Market Demand**: The U.S. marketplace has demonstrated a rising interest in smaller, fuel-efficient vehicles, particularly with climbing fuel costs and increased environmental consciousness. Kei cars could fulfill this demand without significantly disrupting the current automotive landscape.
3. **Regulatory Adherence**: Any proposal to legalize kei cars would be subject to stringent safety and emissions standards, guaranteeing that these vehicles comply with U.S. regulations. This would not imply an automatic acceptance of all kei cars but rather a controlled introduction that prioritizes safety and environmental considerations.
4. **Economic Potential**: Introducing kei cars could generate new economic opportunities, including the possibility of new dealerships, service facilities, and aftermarket parts suppliers. This could invigorate local economies and foster job creation.
**Final Thoughts**
Discussions regarding Trump’s proposal to legalize kei cars in the U.S. have been clouded by misrepresentation and misunderstanding. While valid concerns regarding American manufacturing impacts exist, they frequently overshadow the potential advantages of enhanced consumer options, market demand for fuel-efficient vehicles, and adherence to safety guidelines. As the automotive industry continues to evolve, it is essential to approach such suggestions with an objective viewpoint, acknowledging both the challenges and opportunities they present.