The U.S. dollar fell against other major currencies on Monday, giving up some of the previous week's gains, as markets weighed the outlook for President Donald Trump's tariff policy and its potential to constrict growth and unleash inflation.

The so-called TACO trade will be tested as markets wait to see if Trump will actually follow through with his 50% steel duty or if he will put it on hold soon.

China’s declining steel demand is sweeping through related markets, with prices of the coking coal and coke used in blast furnaces plunging to their lowest since 2016.

President Trump announced Friday that he would double tariffs on imported steel to 50% following a pair of court rulings that left many of his signature duties in limbo.

China says it wants to cut crude steel output this year but traders and steelmakers are betting Beijing won't follow through as industry profitability improves and trade tensions weigh on the economy.

National Economic Council director Kevin Hassett told ABC's "This Week" that President Trump is focused on ensuring the U.S. has a domestic steel industry capable of supplying its needs "China is dumping of steel not just because they love us and they want to give us nice steel,

Prices of a key Chinese steel product used in construction were at their lowest since 2017 as the world’s biggest market for the metal grappled with a massive glut.

Former Congresswoman Michelle Steel outlines the threats China poses in the Yellow Sea amid South Korea's presidential election.