US PresidentDonald Trump has stunned car enthusiasts by telling media his administration would look at allowing small, fuel-efficient ‘Kei’ cars from Japan into the country.
As the Trump administration looks to wind back emissions laws – a step backwards from those introduced under previous President Biden – the plan to allow Kei cars into the US seemingly came out of nowhere.
“They’re very small, they’re really cute, and I said, ‘How would that do in this country?’” President Trump told reporters outside the White House on Wednesday, as reported by theDaily Mail.
“But we’re not allowed to make them in this country, and I think you’re going to do very well with those cars, so we’re going to approve those cars,” he added, appearing to indicate he supports US manufacturing of these vehicles, too.
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While Kei cars have become popular used imports in the US, they are banned from sale in Iowa, Maryland, Nevada, New Mexico, Oregon and Vermont.
The President’s comments appeared to surprise Transportation Secretary Sean Duffy, who said he is “clearing the deck” for the approval, but in separate media interviews said they may not necessarily suit the market regardless.
“Are they going to work on the freeways? Probably not,” he told CNBC, as reported by theDaily Mail.
The call is the opposite of previous comments from President Trump, who earlier this year challenged Japan on why more US-made vehicles are not sold there – echoing sentiment seen during his previous administration.
In August 2025, President Trump called for more US trucks to be sold in Japan, but the Japanese government explained larger vehicles are not popular with buyers there.
The differences between the most popular vehicles in the US – large pickups like the Ford F-150 and Chevrolet Silverado – and Kei cars could not be starker.
Kei cars are cheap, tiny, low-powered city cars limited in engine size to 660cc and designed to handle narrow city lanes, with the size and output restrictions bringing Japanese tax benefits.
Automakers in Europe have also been in discussion with automakers there to develop a similar low-cost, super-frugal mini-car segment for buyers there.
Recently, Chinese car giant BYD announced it would produce a battery-electric Kei car – the Racco – as it looks to establish itself in Japan.
In Australia, Honda has confirmed it will introduce the Super-One electric Kei car here in the second half of 2025.
President Trump is looking to apply a 15 per cent import tariff on Japanese goods, which would be applied to Kei cars unless a special exemption were granted.
The Japan Timesreported on December 3, 2025, that US affiliates of nine Japanese companies would sue the US government, challenging the legality of the tariffs and seeking full refunds of those paid so far.
President Trump’s comments also came only hours before he met with US automakers with plans to wind back emissions regulations.
The US Department of Transportation and President Trump announced the previously world-leading Corporate Average Fuel Economy (CAFE) standards would be softened.
Instead of automakers having to meet an average 50.4mpg (roughly 4.7L/100km) by 2031, the reduced targets allow them an average of 34.5mpg (roughly 6.82L/100km).
The savings for US motorists under the higher figure, proposed under previous President Joe Biden, were estimated to be $US23 million ($A34.75 million) – with that saving now set to be lost.
The revised targets are not yet law, with the government proposal set for November allowing input and feedback from stakeholders.