President Donald Trump, intrigued by the tiny “kei” cars he saw in Japan, announced plans to allow their production and sale in the US, according to Bloomberg. These ultra-compact vehicles are currently barred from US manufacturing because they don’t meet federal standards.

“They’re very small, they’re really cute, and I said ‘How would that do in this country?’” Trump said while revealing plans to loosen Biden-era fuel efficiency rules. He added that “we’re gonna approve those cars,” and said he has instructed Transportation Secretary Sean Duffy to authorize production.

Kei cars are hugely popular in Japan, making up about a third of new vehicle sales. In the US, they’ve developed a niche fanbase through a law allowing imports of models older than 25 years, but many states restrict or ban them over safety concerns about their size and speed among large American trucks and SUVs.

Bloomberg Intelligence analyst Tatsuo Yoshida noted that Japanese carmakers avoid the US market because “Pricing and costs don’t match,” even if interest exists. Duffy said his agency has now “cleared the deck” for automakers like Toyota to sell smaller, more efficient models in the US. Toyota declined to comment.

Bloomberg writes Trump’s newfound enthusiasm for kei cars mirrors how passenger vehicles have recently been used as leverage in US-Japan trade talks, where the idea of Japan importing more American-made vehicles helped move negotiations forward.

Ultra-compact cars have made several attempts to break into the American market before. In the 1960s and 1970s, models like the Subaru 360 and Honda N600 targeted budget-conscious drivers but struggled against tougher safety standards and American preferences for bigger, more powerful vehicles. The small-car surge briefly resurfaced after the 1970s oil crisis, but most mini-cars failed to stay profitable.

Interest returned in the 2000s with microcars like the Smart Fortwo, which attracted attention in crowded cities but remained a niche purchase due to limited performance and concerns about crash safety in a market dominated by SUVs. Trump’s policy shift could mark the first time ultra-compact vehicles receive broad regulatory support in the US, potentially giving them more than a novelty foothold.