President Donald Trump said American automakers may now produce smaller, Europe-style cars after directing Transportation Secretary Sean Duffy to approve the change, announcing the move during a visit to General Motors’ Milford Proving Ground in Michigan.
Speaking at the GM facility, Trump said he had given US carmakers ‘the right’ to build what he called ‘tiny little’ cars, noting he had seen many such vehicles while traveling in Europe. He said he asked Secretary Duffy to approve the proposal and that it was cleared immediately.
Addressing GM Chair and CEO Mary Barra, Trump said companies could choose to build smaller models as long as they meet safety standards. He suggested manufacturers would add protections — ‘a cocoon’ — to make the cars safe, and quipped that he ‘would have been a wonderful automobile designer.’ He argued there is a market for more affordable vehicles.
The remarks were part of a broader appearance in suburban Detroit where Trump highlighted his administration’s auto policies ahead of midterm elections. He defended a 25% tariff on imported medium- and heavy-duty vehicles as a measure to support American manufacturing. Trump said GM had expanded domestic production citing that vehicles built in the US do not attract those tariffs, and claimed his policies were helping bring auto jobs back and encouraging new factories.
During the visit he toured the proving ground, watched vehicle demonstrations, viewed models including a Corvette and a Cadillac, and signed a special-edition white Corvette commemorating the United States’ 250th anniversary. His speech was briefly interrupted by protesters, whom he dismissed, and he was joined onstage by Barra and several Michigan Republican leaders.
Trump’s announcement signals a potential shift in US auto manufacturing policy that could encourage more compact, fuel-efficient models similar to those common in Europe, provided automakers meet US safety and regulatory requirements.