Tiny Cars to be Unleashed by Trump Administration

By Charlie McCarthy | Friday, 05 December 2025 11:22 AM EST

In a significant shift in automotive policy aimed at boosting domestic manufacturing and consumer choice, President Donald Trump announced today his approval of producing “tiny cars” within the United States. This initiative marks what officials described as part of broader efforts to reorient federal regulations towards lower costs and increased options.

Trump made the announcement via a post on Truth Social this morning. He expressed enthusiasm for these compact vehicles, describing them as inexpensive, safe, fuel-efficient, and incredibly innovative.

He specifically mentioned that these “tiny cars” can be powered by gasoline, electric, or hybrid systems, reflecting what he termed an “all-of-the-above” strategy to reduce costs while expanding choices for American consumers. He emphasized the importance of immediate action in his announcement: urging manufacturers to “START BUILDING THEM NOW!”

The President also offered gratitude towards specific government departments, including thanking the Justice Department and referencing officials from Transportation and Environment sectors.

This move aligns with a second-term focus on policies designed to foster consumer freedom while supporting American industry. The administration believes this approach will benefit working families by providing more affordable alternatives to larger vehicles currently dominating the market.

Transportation Secretary Sean Duffy echoed these sentiments during a CNBC interview, stating that if there is demand for such vehicles, manufacturers should be able to produce them without unnecessary regulatory barriers. He indicated that the department was actively clearing obstacles from current regulations to facilitate this development in auto manufacturing.

The announcement comes amidst an ongoing debate on fuel economy standards and vehicle affordability. While some reports indicate potential savings of approximately $1,000 per vehicle for consumers under new guidelines, critics have voiced concerns about possible impacts on long-term fuel efficiency goals or environmental considerations.