Trade tensions between the world's two leading economies are set to escalate on Monday, as Beijing begins levying tariffs on certain U.S. agricultural goods in retaliation for President Donald Trump's latest hike on Chinese imports.

Since retaking office in January, Trump has unleashed a barrage of tariffs on major U.S. trading partners, including China, Canada and Mexico, citing their failure to stop illegal immigration and flows of deadly fentanyl.

After imposing a blanket 10% tariff on all Chinese goods in early February, Trump hiked the rate to 20% last week.