WASHINGTON, D.C. December 3, 2025 – In a wide-ranging Oval Office discussion on Wednesday aimed at easing regulatory burdens on the auto industry, President Donald Trump veered into an unexpected endorsement of ultra-compact “kei” cars popular in Asia, directing Transportation Secretary Sean Duffy to fast-track their approval for U.S. production despite longstanding safety concerns.
The remarks came during a high-profile White House event where Trump unveiled plans to dramatically roll back fuel economy standards set under the Biden administration, lowering the required industry-wide average for light-duty vehicles from 50.4 miles per gallon (mpg) by 2031 to just 34.5 mpg. Flanked by Ford Motor Company CEO Jim Farley and other industry leaders, Trump framed the changes as a boon for American consumers seeking more affordable vehicles, including gas-powered options that he argued had been stifled by “ridiculous” environmental mandates.
“You go to Japan that I just left, and South Korea and Malaysia – they have a very small car, sort of like the Beetle. Very small and really cute,” Trump said, gesturing animatedly as cameras rolled for C-SPAN. “Everyone seems to think [it’s] good, but [we’re] not allowed to build them. I have authorized the secretary to immediately approve the production of those cars. Some of them are really beautiful if you take a look – Honda, some of the Japanese companies do a beautiful job, but we are not allowed to make them.”
The directive targets so-called kei cars – lightweight, fuel-efficient micro-vehicles capped at around 3,300 pounds and 63 inches wide under Japanese regulations – which have long been barred from U.S. roads due to federal motor vehicle safety standards (FMVSS) that prioritize crash protection for larger vehicles. Proponents say these cars could slash manufacturing costs and appeal to urban drivers, but critics warn they pose heightened risks on American highways dominated by SUVs and trucks. He later joked about Trump’s relentless pace, noting a midnight call from the president during his recent Asia trip to “clear the regulations on this.”
The fuel economy overhaul, proposed by the National Highway Traffic Safety Administration (NHTSA), also reclassifies certain crossovers as passenger cars rather than light trucks and scraps credits for electric vehicle production – moves designed to favor traditional engines amid slowing EV demand. The Biden-era rules, finalized in 2024, were projected to save drivers $600 per vehicle in lifetime fuel costs and cut gasoline use by 70 billion gallons through 2050. Trump’s plan, if finalized, could add billions in emissions and fuel expenses, drawing swift backlash from environmental groups.
“This is a giveaway to Big Oil and polluters at the expense of public health and the climate,” said Lena Moffitt, president of Evergreen Action, in a statement Thursday. California, which had secured waivers for stricter standards, vowed legal challenges, while automaker stocks rose modestly in after-hours trading.
Trump, fresh from his Asia tour, tied the small-car push to his “America First” agenda, insisting it would boost domestic manufacturing. “I think you will do very well,” he told the room, turning to Farley with a grin.
The announcement underscores the administration’s aggressive deregulation streak, following earlier moves to end fuel economy fines and rescind EV tax incentives. As the industry grapples with supply chain woes and shifting consumer tastes, Wednesday’s Oval Office spectacle – complete with American flags and a diverse advisory panel – signaled strong Detroit support for the pivot.
Details on the small-car approval timeline remain unclear, but Duffy’s office confirmed NHTSA would prioritize reviews. For now, the “really cute” imports remain a road not taken – at least stateside.
