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chair Donald ruff on th said th that Kei cars, which ar currently not sold in the United States by could hit the US market soon. The announcement sparked speculation that it could lead to Toyota's iconic Hilux pickup truck being sold in the US market.
Hilux, the heavy-duty pickup truck made by the Japanese automobile maker, is not sold in the US, partly because of the National Highway Traffic Safety Administration stipulation that it is unsafe for US roads. Plus, the 25% additional tariffs on imported light trucks - called 'Chicken Tax' - makes the sale of the Hilux prohibitively expensive.
But, after Trump's words on Thursday, buzz has started around whether the much-loved Toyota Hilux could, finally, make it to the US market. Will it happen? Let's discuss.
The buzz around Kei cars entering the US market was sparked by comments made by Donald Trump and Transportation Secretary Sean Duffy at the White House today. Thus, it is important to look into what they said.
Trump said that his plans to sell and make Kei cars in the US stemmed from his recent visit to the US when he saw several of those cars on the streets and was visibly impressed by them. Trump said that he has had a discussion with Duffy about it, and the plans are underway.
“They’re very small, they’re really cute, and I said, ‘How would that do in this country?’” Trump said. “But we’re not allowed to make them in this country and I think you’re gonna do very well with those cars, so we’re gonna approve those cars.”
Sean Duffy, meanwhile, admitted that the Kei cars are unlikely to work in the US freeways, but their affordability could be a USP for some US consumers. Are they going to work on the freeways? Probably not,” he said, adding that the Kei cars are “much more affordable than the other options that are on the market today.”
Also read: Boredom or health issue? Questions swirl after Trump appears to doze off during cabinet meeting
Trump and Duffy revealed that the department is already working to determine what can be done. But no concrete plans were released.
The Chicken Tax is a 25% US tariff imposed on imported light trucks, created in 1964 during a trade dispute with Europe over American chicken exports. Although originally retaliatory, it still applies today and makes importing small foreign-made trucks extremely expensive.
Kei trucks from Japan—classified as light commercial vehicles—fall under this tariff, which, combined with U.S. Safety and emissions rules, effectively prohibits their economical import and sale.
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