Mexico is willing to raise tariffs on Chinese goods and find ways to buy more from the US in a bid to avoid duties threatened by President Donald Trump, according to people familiar with the matter.

The fresh China tariffs, in addition to the 10% tariff levied on Feb 4, coincide with the start of China's annual parliamentary meetings on Wednesday, a set-piece political event where Beijing is expected to unveil its main economic priorities for 2025.

President Trump is threatening tariffs on more than $900 billion worth of goods from Mexico and Canada. Rachel Michelin, president and CEO of the California Retailers Association, said almost every industry would be impacted by the increased tariffs.