EDITORIAL: Trade agreement secured, but much work remains

The Trump administration took a step Thursday toward quelling economic uncertainty by unveiling a trade deal with the United Kingdom. The White House promised more to come. Business owners and consumers certainly hope so.

The announcement was short on details, and the specific language has yet to be determined. But The New York Times reported that Britain would drop its tariffs on “U.S. beef, ethanol, sports equipment and other products” and buy “$10 billion of Boeing airplanes. The United States in return said it would pare back tariffs that (President Donald) Trump has put on cars and steel.”

Notably, the deal leaves in place the 10 percent across-the-board tariffs the president has imposed on all imports, although the British government said it was “still pushing” to bring that down, according to the Times.

Financial markets have responded favorably over the past few weeks as Mr. Trump softens his rhetoric on punishing tariffs and moves toward talks with vital trade partners, including India, South Korea and Japan. The president also said he expects “a good weekend” as U.S. trade negotiators will meet with Chinese representatives in Geneva on Saturday.

“Talks are starting to take place globally,” Sam Stovall, chief investment strategist at CFRA Research, told CNN, “and there is increased optimism that deals can be made before the July 9 expiration of the reciprocal pause.”

But much work remains. The “special relationship” between the United States and Britain is more conducive to mending ties than the strained diplomatic state that characterizes the nation’s relationship with China, for instance. There are still scores of nations that the president has threatened with high reciprocal levies two months from now. Will there be another delay in the absence of 100 more trade deals? Nobody knows.

That type of uncertainty has ramifications for business investment and consumer behavior. The longer it hangs in the air, the more likely there will be deleterious economic consequences — and that should be an impetus for the president and his negotiators to press forward with a sense of urgency. The administration should also continue moving on its vital agenda of tax and regulatory reform in an effort to minimize any issues that may arise from trade disruptions.

Progress is progress and many U.S. businesses should benefit as “it could open up the market for some more U.S. goods,” CNN noted. In addition, the pact with Britain sends a message to other countries that the Trump administration is willing to make deals.

One down. Ninety-nine to go.