Picture this: you’re stuck in rush-hour traffic, surrounded by towering pickups and crossovers that look like they could eat your sedan for breakfast. Then, out of nowhere, a tiny box on wheels zips past, barely taller than your door handle, yet somehow looking completely at home. That little vehicle? It’s a Japanese kei car – and thanks to a surprise move from President Trump, it might soon be built right here in America.
I’ll admit, when I first heard the news I did a double-take. The same administration that championed big trucks and rolled back fuel-economy rules is now championing cars that make a Smart Fortwo look oversized? Yet here we are. Trump, apparently charmed by the miniature machines he saw during trips to Japan, has personally directed the Department of Transportation to clear the way for these micro-cars on American soil.
The Big Little Announcement That Caught Everyone Off Guard
It wasn’t buried in a 400-page policy document. Trump said it out loud, almost casually: “They’re very small, they’re really cute… we’re gonna approve those cars.” And just like that, decades of regulatory barriers started crumbling.
For the uninitiated, kei cars (short for keijidōsha or “light vehicle” in Japanese) are a unique category defined by strict size and engine limits – currently 3.4 meters long, 1.48 meters wide, and 660cc displacement. In Japan they’re everywhere: roughly one out of every three new vehicles sold belongs to this class. They get phenomenal fuel economy, park in spaces that would make Smart car drivers jealous, and cost a fraction of normal cars to buy and run.
Here in the States? They’ve been the ultimate forbidden fruit. You can import ones over 25 years old (hello, 1990s Autozam AZ-1), but new ones? Forget it. Federal crash standards, bumper height rules, and emissions requirements have kept modern kei cars locked out. Until now, apparently.
Why Now? Trade, Tariffs, and a Personal Fascination
Sure, Trump called them “cute,” but there’s more to the story. Anyone who followed the recent U.S.–Japan trade negotiations knows automobiles were the elephant in the room. Japan has long resisted opening its market wider to American vehicles. Bringing kei-car production to the U.S. offers a clever workaround: Japanese brands could build their most popular segment here, create American jobs, and ease trade friction all at once.
Think about it. Instead of shipping millions of RAV4s and CR-Vs across the Pacific, companies could establish small assembly plants in right-to-work states, crank out kei vehicles tailored for American tastes (maybe a slightly taller “America-spec” version), and still keep costs low enough to hit that magical $12–18k price point everyone keeps talking about.
“We’ve cleared the deck,” the Transportation Secretary reportedly told industry insiders, signaling that the old excuses no longer apply.
A Quick History of Tiny Cars Trying (and Mostly Failing) in America
This isn’t the first time small cars have knocked on America’s door.
- 1950s–60s: The Subaru 360 arrives with 55 mpg and a price under $1,300. Motor magazine calls it “the most unsafe car” they ever tested. Sales collapse.
- 1970s oil crisis: Suddenly everyone wants small. Honda Civic and VW Rabbit thrive, but true micro-cars like the Citroën 2CV never get traction.
- 2008–2015: Smart Fortwo launches with huge hype. Peak sales hit 25,000 units one year—then fade to almost nothing as gas prices drop and buyers return to crossovers.
- 2010s: Fiat 500 has a moment, Scion iQ flops spectacularly, Mitsubishi i-MiEV electric kei tries and disappears.
Pattern? Americans say they want cheap, efficient cars… until they actually have to live with one every day next to 6,000-pound pickups doing 85 mph on the interstate.
So What’s Different This Time?
Three things, actually.
First, the regulatory change appears genuine. Previous administrations talked about “harmonizing” standards but never delivered. This one is cutting red tape with a chainsaw.
Second, city and suburban congestion is worse than ever. Parking spots shrink, insurance rates climb, and younger buyers openly say they’re tired of paying $60 to fill a truck they drive ten miles a day.
Third – and maybe most important – manufacturing economics have flipped. Modern kei platforms are remarkably sophisticated. Sliding doors, turbo engines, hybrid systems, and surprisingly roomy interiors all fit inside that tiny footprint. Build them here with American labor rates offset by high automation, and the price can still land under $20k. That’s Civic territory in 2005 money.
The Safety Question Everyone Asks
Let’s address the elephant in the (very small) room: are these things safe?
Modern Japanese kei cars routinely earn top marks in their domestic crash tests, but those tests are less demanding than U.S. federal standards. On the flip side, physics doesn’t change: a 1,800-pound car hitting a 5,500-pound truck at 70 mph is always going to lose.
However, most kei-car driving happens in urban environments at lower speeds. Add standard automatic emergency braking, multiple airbags, and modern zone-body construction, and the real-world risk starts looking more acceptable – especially if buyers understand these are second or third household cars, not interstate cruisers.
Some states will almost certainly keep highway bans in place. Others may create special “low-speed vehicle plus” categories. The market will sort it out.
Who Might Actually Build Them Here?
Toyota, Honda, Suzuki, Daihatsu (Toyota-owned), Mazda, and Mitsubishi all have kei-car expertise. Toyota and Honda already have massive U.S. footprints. Setting up a dedicated kei line inside an existing plant would be relatively cheap compared to a full new factory.
Don’t expect exact Japanese-spec models. More likely we’ll see “America-spec” versions: slightly taller ride height, reinforced bumpers, maybe a 1.0–1.3 liter engine option to calm the highway crowd. Think Honda N-One crosses with HR-V styling cues, priced around $17–22k.
There’s also the Chinese wildcard. Brands like Wuling already sell a kei-sized EV (the Mini EV) by the millions in China. If tariffs stay high, local production suddenly looks attractive.
The Cultural Hurdle: Will Americans Really Buy “Cute”?
Here’s where my skepticism creeps in. I’ve driven kei vans in Japan – they’re brilliant, practical, and fun. But I also live in Texas, where the best-selling vehicle is the Ford F-Series for the 47th year running. Image matters.
That said, cultural shifts happen faster than we expect. Ten years ago nobody thought full-size electric pickups would sell. Today Rivian and Ford can’t build them fast enough. If gas hits $5 again, or if Gen Z keeps prioritizing experiences over horsepower, the math changes overnight.
Marketing will be everything. Sell it as the ultimate anti-crossover – cheaper to buy, insure, park, and fuel. Pitch it to empty-nesters, college kids, urban professionals with 8-mile commutes. Maybe even lean into the “cute but tough” angle the Japanese already mastered.
What This Could Mean Long-Term for the U.S. Auto Market
If even one major manufacturer commits, we could see:
- A true sub-$20k new car segment for the first time in decades
- Downward pressure on used-car prices
- New competition forcing mainstream brands to sharpen pricing
- More hybrid and EV options in the affordable range
- Revival of smaller assembly plants in rural states
Or… it could be another Smart Fortwo moment. Great press launch, modest sales, quiet cancellation five years later. We’ve seen both movies before.
My gut? We’ll get a couple models by 2027–2028. They’ll find a passionate niche – think 50–100k units combined annually – but won’t threaten F-150 supremacy. And that’s fine. Not every vehicle needs to be for everybody.
Either way, the fact we’re even having this conversation in 2025 feels like a small miracle. The same president who once mocked small cars just handed the micro-car community the biggest win in half a century.
Sometimes reality really is stranger than fiction. Now let’s see if American drivers are finally ready to think small.
