President Trump announced on Friday that he has approved the production of compact vehicles known as “micro cars” in the United States. This decision is expected to bring popular small cars from Asia to the American car market.
In a post on the social media platform “Truth Social,” President Trump stated, “I have just approved the manufacturing of ‘micro cars’ in the United States. Manufacturers have long wanted to do this, just like they have been successfully producing these cars in other countries. They can be powered by gasoline, electricity, or hybrid power.”
Describing these “soon-to-be-released cars” as “affordable, safe, fuel-efficient, and, in simple terms: amazing,” President Trump urged manufacturers to “start making them now” and thanked the Department of Justice and the Departments of Transportation and Environment for their support.
During his state visit to Japan in October, President Trump took a keen interest in Japan’s K-car vehicles. These small cars are typically no wider than 4.9 feet, 6.6 feet tall, and 11.2 feet long, and are very popular in Asian markets.
On Wednesday, during an Oval Office event to repeal the Biden administration’s gas emission standards, President Trump expressed his fondness for these micro cars.
Reflecting on his trip to Japan, the President said, “They have these really small cars, a bit like Volkswagen’s old ‘Beetle.’ They are very small and really cute. I said, ‘How would these do in our country?’ Everyone seemed to think it would be great, but (currently) the United States prohibits their manufacturing.”
These compact cars are known for their high fuel efficiency and are particularly suitable for narrow city centers or roads, popular in Asia, providing an alternative to bulky vehicle models. While these micro cars have some enthusiastic followers in the US, they were previously prohibited from being manufactured domestically due to safety concerns by the federal transport regulatory agency.
According to CNBC, Transportation Secretary Sean Duffy stated in an interview on Thursday that these vehicles may be most suitable for consumers living in large cities, and their prices may be more affordable than most cars on the market. He mentioned that the Transportation Department is currently working to lift the ban on micro cars.
However, Duffy also admitted that these cars may face challenges on American highways. He said, “Can they operate on highways? Probably not.”
Meanwhile, President Trump’s announcement opens the door for popular Asian market vehicles like the Toyota Hilux to enter the US, models that have long been sought after by American consumers.
Asian manufacturers such as Honda, Subaru, Mitsubishi, Nissan, Suzuki, and Mazda may bring their K-car manufacturing business to the US, creating more job opportunities in the manufacturing industry for Americans.
Currently, the average price of a new car in the US has soared to $50,000, rising by 30% since 2019, with insurance rates seeing a larger increase. In this context, affordable micro cars could provide consumers with a more budget-friendly option.
However, there are still legal and regulatory issues to be resolved, as President Trump has not explained how federal rules will be coordinated with existing state laws.
Currently, six states – Iowa, Maryland, Nevada, New Mexico, Oregon, and Vermont – completely prohibit these micro cars from being driven on roads, with dozens of other states imposing restrictions on how and where these vehicles can be driven.