Another recent idea floated by Donald Trump is causing some raised eyebrows. It has to do with the possibility of having kei cars produced and sold in the U.S.
According to the American president, the small Japanese cars, renowned for being pint-sized and very stingy on fuel, could offer an affordable alternative to American consumers. This at a time when the U.S. administration wants to cut back on CAFE fuel consumption standards.
There would be one condition to opening the gates to kei cars: they would have to be manufactured in the United States.
Ill-fitting for the U.S. market?
To say the least, the arrival of kei cars would constitute a real shift in a country in love with big SUVs and full-size pickup trucks. Current kei cars are designed for the Japanese market, with an engine limited to cm³ and very small dimensions. They don’t comply with U.S. safety standards, which are much more rigorous in terms of structural resistance, equipment and crash test results. An automaker wanting to market them stateside would have to design fully adapted versions.
Trump’s idea comes, of course, within a context of trade tensions. The administration has already imposed 25 percent tariffs on imported vehicles, which complicates the arrival of any foreign model. The integration of locally produced Kei cars would circumvent the trade barriers, while creating a new market niche.
But how big a niche could we expect, realistically? Carmakers would have to decide if kei cars would be a profitable enterprise, profitable enough to modify to render them compliant with North American standards, without losing the original spirit that makes them charming.
Not the same in Canada
For Canada, however, the situation is quite different. Even if the U.S. opens the door, Canadian import rules remain unchanged. Ottawa requires that an imported vehicle from a foreign market be at least 15 years old to enter the country without major modifications. In Quebec, the restriction is even stricter: a Japanese model must be 25 years old to be registered.
This means that a new or recent kei car could not legally circulate here. Furthermore, importing a vehicle from Japan involves taxes, inspection fees, customs obligations, and mechanical compliance, making the exercise costly and complex. Domestic U.S. production could change that.
The upshot of all this is, for Americans and Canadians alike, don’t hold your breath expecting an influx of those cute little kei cars from Japan.
