Overview
- President Trump said he authorized Transportation Secretary Sean Duffy to remove regulatory barriers so ultra-compact cars can be built and sold in the U.S., a move paired with rolling back Biden-era fuel economy targets.
- Duffy said DOT has “cleared the deck” with NHTSA for smaller, more affordable models to be made domestically, later noting such vehicles may be better suited to city use than freeways.
- Most existing kei models would not meet U.S. Federal Motor Vehicle Safety Standards, federal import law still restricts newer mini trucks, and state registration rules remain inconsistent.
- No regulatory text, safety-standard changes, tariff relief, or manufacturer production plans have been announced, and USDOT has not detailed the specific authorities invoked.
- Analysts doubt near-term viability, citing weak U.S. demand for ultra-small cars, thin margins, the 25% light-truck tariff, and limited incentive for Japanese brands to tool up U.S. production.