Here’s a bold claim: President Donald Trump believes the key to slashing car prices in the U.S. lies in manufacturing tiny vehicles, similar to those zipping around Asia and Europe. But here’s where it gets controversial—experts argue this idea might be more of a pipe dream than a practical solution. And this is the part most people miss: it’s not regulations holding back these mini cars, but American consumers themselves.
In a recent Truth Social post, Trump urged automakers to ‘START BUILDING THEM NOW!’ after meeting with industry executives in December. He claimed to have removed regulatory barriers, but the reality is, there’s no minimum size requirement for vehicles in the U.S.—as long as they meet safety standards. So, what’s the real roadblock? Simply put, Americans overwhelmingly prefer larger vehicles like SUVs and trucks, which offer both comfort and perceived safety on the road.
Take ‘kei’ cars, for example, which are wildly popular in Asia and can cost as little as $8,000 to $10,000. In contrast, the average new car in the U.S. hovers around $50,000. While cheaper cars could ease affordability issues, the demand just isn’t there. Ivan Drury, director of insights at Edmunds, puts it bluntly: ‘Americans don’t feel comfortable driving smaller cars alongside larger vehicles.’ It’s not just about price—it’s about what you get for that price.
Automakers have tried selling compact and subcompact cars in the U.S., but sales have plummeted. Over the past decade, compact car sales dropped 59%, while subcompact sales nosedived 90%. Today, only four subcompact models remain, all built overseas. Even the cheapest option, the Nissan Versa, starts at $18,635—and it’s not exactly flying off lots.
Trump’s rollback of fuel economy rules was supposed to encourage affordable vehicle production, but the results are mixed. Ford recently announced a smaller, cheaper electric vehicle—but it’s exclusively for Europe due to limited U.S. demand. Stellantis plans to sell a tiny electric Fiat in the U.S., but it’ll be imported from Morocco, closer to markets where such cars are popular.
Here’s the kicker: kei cars don’t even meet U.S. safety standards, meaning they’d require significant reengineering to hit American roads. While automakers like Nissan and Toyota say they’ll consider new vehicle types if demand exists, the reality is, most buyers aren’t asking for these cars. Even specialty importers like Gary Duncan, who sells kei trucks in Virginia, cater to niche markets like farmers and wineries—and even then, many states restrict their use.
So, is Trump’s tiny car solution a non-starter? Michael Brooks, executive director of the Center for Automotive Safety, sums it up: ‘Kei cars aren’t built for the U.S. market, and reengineering them would require significant demand.’ But here’s a thought-provoking question for you: If Americans could get past their preference for larger vehicles, could tiny cars ever become a viable option? Or is this just a cultural roadblock that’s here to stay? Let us know what you think in the comments!
