From Quartz.

Donald Trump proposed importing Japan’s kei cars to address rising U.S. vehicle costs, underscoring a gap between consumer demand and domestic offerings. The suggestion cites average new-car prices near $50,000 as buyers pivot, making kei cars and U.S. car prices a policy flashpoint. It also intersects with fuel economy standards that linked efficiency targets to vehicle size starting in 2007, as automakers emphasized larger trucks and SUVs.

Trump later moved to weaken standards to about 34.5 MPG for 2031 and removed fines; GM and Stellantis executives appeared at the announcement. Japanese kei models approach 50 MPG but face U.S. safety rules that raise costs, while startups remain niche.

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