President Donald Trump announced Friday that he has officially approved the production of “tiny cars” in the United States — opening the door for automakers to build the kind of small, low-cost vehicles that have long been popular in Asian markets but restricted under previous regulatory regimes. The move represents another effort by the administration to expand consumer choice and reverse what Trump says are unnecessary federal barriers created during the Biden years.
“I have just approved TINY CARS to be built in America,” Trump posted on Truth Social. “Manufacturers have long wanted to do this, just like they are so successfully built in other countries. They can be propelled by gasoline, electric, or hybrid.” He described the vehicles as “inexpensive, safe, fuel efficient and, quite simply, AMAZING!!!” urging manufacturers to “START BUILDING THEM NOW!”
The announcement follows Trump’s comments earlier this week praising Japan’s Kei cars — compact, ultra-efficient vehicles commonly used throughout Asia. Trump likened them to the classic Volkswagen Beetle and questioned why American consumers have been denied access to similar options. “They have a very small car. It’s sort of like the Beetle used to be with the Volkswagen,” Trump said Wednesday. “They’re really cute. And I said, ‘How would that do in this country?’ And everyone seems to think good, but you’re not allowed to build them.”
Transportation Secretary Sean Duffy suggested tiny cars would be particularly well-suited for dense urban areas and could offer an affordable alternative amid rising vehicle costs. The administration’s message aligns with a broader push to make transportation more accessible without forcing consumers into expensive electric vehicles — a key criticism Republicans have raised against Biden-era energy mandates.
Trump’s approval of tiny cars comes the same week his administration announced plans to roll back federal vehicle mileage rules imposed under President Biden. The Corporate Average Fuel Economy (CAFE) standards — issued through the Department of Transportation — require automakers’ fleets to meet strict minimum miles-per-gallon thresholds. Industry leaders have long argued that Biden’s rules limited innovation, raised prices, and restricted the kinds of vehicles companies could offer.
The tiny-car directive, combined with the CAFE rollback, underscores Trump’s broader effort to unwind regulations that he says distort the auto market and burden both manufacturers and consumers. Rather than forcing automakers into costly compliance schemes, Trump argues that freeing companies to build a wider range of vehicles — from small, low-cost cars to traditional fuel-powered trucks — better serves American families.
For supporters of America First economic policy, the move is another example of Trump making good on his promise to boost domestic manufacturing and give consumers more freedom. By contrast, critics of Biden’s approach say the prior administration prioritized environmental ideology over affordability and common sense, contributing to soaring car prices and limited consumer options.
With automakers now permitted to explore tiny-car production, the United States could soon see a new category of low-cost, efficient vehicles enter the market — built by American workers and sold without the heavy-handed restrictions of the last administration.
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