Trump greenlights domestic manufacturing of compact vehicles

 December 6, 2025

President Donald Trump just dropped a bombshell that could shrink your car payment, along with your parking space.

On Friday, Trump unveiled a game-changing plan to approve the production of "tiny cars" right here in the U.S., aiming to boost affordability, safety, and fuel efficiency while giving a nod to consumer choice and domestic manufacturing, as Newsmax reports.

Earlier in the week, Trump shared his vision from the Oval Office, expressing a longing for Americans to zip around in ultracompact vehicles akin to Japan’s beloved "kei" cars.

From East Asia to American Streets

Inspired by recent travels through East Asia, Trump sees these microcars as a practical fix for city dwellers and budget-conscious families.

Historically, federal crash safety rules and a patchwork of state road laws have kept these pint-sized imports off American highways. Now, Trump’s directive aims to change that, opening the door for a niche but growing fanbase craving simple, urban-friendly rides.

Via a lively Truth Social post on Friday morning, Trump declared, "I have just approved TINY CARS to be built in America... inexpensive, safe, fuel efficient and, quite simply, AMAZING!!!" That’s a bold claim, but if these vehicles deliver, they could be a lifeline for working folks tired of overpriced options.

Trump’s Call to Action for Manufacturers

Trump followed up with a direct order to automakers: "START BUILDING THEM NOW!" It’s a rallying cry for industry to step up, and with the backing of the Justice Department, Department of Transportation, and Department of Environment, the path seems clearer than ever.

Transportation Secretary Sean Duffy is already on board, tasked with slashing barriers that have long stifled compact car production. Duffy noted, "If there's a market for those vehicles, I want to give our manufacturers the opportunity to build those cars... [we are] clearing the deck of rules that stand in the way."

Trump’s broader second-term agenda ties this initiative to restoring U.S. manufacturing muscle while prioritizing what consumers actually want. Critics of past policies argue that heavy-handed regulations drove up vehicle costs and pushed the market toward pricey electric models or oversized gas-guzzlers.

Rolling Back Overreaching Fuel Standards

Part of this plan involves dismantling Biden-era fuel efficiency mandates, which the current administration says amounted to a backdoor electric vehicle push. Estimates from the White House suggest that easing these standards could trim about $1,000 off the price of each new car, a tangible win for buyers.

Of course, some detractors warn that relaxed rules might hike long-term fuel expenses for drivers.

Conservatives in Washington are cheering this as a return to common sense, arguing that the greenest policy is one that lets Americans afford efficient cars they’ll actually buy. Forcing unaffordable tech down our throats isn’t progress -- it’s punishment.

An All-American Strategy for Choice

Trump’s strategy is pitched as an all-encompassing approach, greenlighting compact cars with gas, electric, or hybrid powertrains to maximize options and minimize costs. If automakers and regulators follow through, these microcars could offer a genuine alternative to the bloated, overpriced vehicles dominating lots today.

This move also sparks a larger debate over fuel economy rules and the soaring cost of new rides. While progressive agendas often prioritize lofty environmental goals, conservatives counter that pricing families out of the market isn’t the answer -- it’s just unfair.

Ultimately, Trump’s tiny car initiative could be a small but mighty step toward putting American manufacturing and consumer needs back in the driver’s seat. If these vehicles prove as amazing as promised, they might just steer us away from the regulatory roadblocks of the past.

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