Mexican mega-port faces challenges from Trump's tariff policies

The port, which covers an area of water and land the size of several thousand football fields, handles thousands of vehicles and even more auto parts.

Millions of other goods from various industries and countries also arrive at the port.

As well as the logistical challenge, Mexican authorities face mounting pressure from Trump to tackle trafficking of drugs or their precursors hidden in imported goods.

The importance of Lazaro Cardenas -- located in Michoacan, one of Mexico's most violent states -- reflects the country's deep integration with the United States and Canada thanks to decades of free trade agreements.

"It's a strategic logistics point," Joel Mendez, the port's operations manager, told AFP during a tour of the facilities.

The port is connected to a railroad that extends to the United States and Canada, so a container can arrive in Chicago in seven days.

- Expansion planned -

Lazaro Cardenas has become a major competitor to the Port of Long Beach in California, according to local authorities.

So far there is no sign of a slowdown at the Mexican port, its operator says.

Container throughput increased 11 percent between January and March, when Mexico was already in Trump's sights.

There are plans to expand the port's size by 1,100 hectares (2,700 acres) -- around 900 football fields.

It already handles the most vehicle shipments of any Mexican seaport, accounting for 35 percent of the national total.

It also processes inputs for the steel industry, another sector targeted by Trump's tough trade policy.

ArcelorMittal, one of the world's largest steelmakers, has a presence in Lazaro Cardenas.

Though Trump excluded Mexico from his steep "reciprocal tariffs" -- and this week eased auto import duties --- its steel and aluminum exports are subject to a 25 percent tariff.

That is a major challenge for a country that is home to plants operated by major foreign automakers such as Ford, General Motors, Volkswagen, Audi and BMW.

Despite fears of an economic downturn, Mexico's economy avoided a recession in the first quarter of the year, growing 0.2 percent from the previous quarter, a preliminary estimate showed Wednesday.