Mexico is forging ahead with a $2.7 billion expansion of its Port of Manzanillo, signaling confidence in global trade despite looming tariff threats from the incoming Trump administration. The ambitious project, slated for completion by 2030, aims to more than double the port’s capacity, propelling it into the ranks of the world’s top 20 container ports and making it Latin America’s busiest maritime gateway.

Located on the Pacific coast in Colima, Manzanillo will expand from 450 hectares to over 1,800 hectares, increasing its annual capacity to 10 million TEUs. This would position the port on par with the Port of Los Angeles, the United States’ leading hub for maritime trade. The project is funded through a mix of public and private investments, with interest from firms such as Ferromex, a Grupo Mexico Transportes railroad subsidiary.

The port handles goods from over 140 countries, including key materials for the automotive and steel industries. While China is a significant trading partner, Manzanillo also imports from Japan, South Korea, the United States, and Latin American nations, highlighting its diversified trade network.

Geopolitical concerns, however, loom large. The U.S. and Canada have expressed apprehension about Chinese influence in Mexico’s ports, fearing that they could serve as backdoor routes for goods circumventing trade agreements. Canadian officials, including Prime Minister Justin Trudeau, have hinted at these concerns ahead of the 2026 North American trade agreement review.

Mexico’s President Claudia Sheinbaum has pushed back against such claims, emphasizing the low percentage of Chinese content in Mexican-manufactured exports. She also affirmed Mexico’s commitment to reducing its trade imbalance with China while strengthening ties with its North American partners.

Despite tariff threats and geopolitical scrutiny, Asipona Manzanillo officials remain optimistic. “We continue growing, seeking to be an efficient and dynamic port,” said Julieta Juarez Ochoa, the port’s commercialization manager. Admiral Mario Alberto Gasque, director of Asipona Manzanillo, added that Mexican ports are prepared to adapt to evolving political conditions.

Security is also a priority for the expanded facility. Enhanced technologies are being implemented to combat drug trafficking, including detecting synthetic drug precursors like fentanyl and methamphetamine, in collaboration with U.S. anti-drug initiatives.

As global trade faces mounting challenges, the Port of Manzanillo’s expansion represents a bold investment in Mexico’s position as a pivotal link in the international supply chain.