Navigating negotiations with Trump, the self-proclaimed dealmaker President
On a regularly volatile rollercoaster ride since taking office in early 2025, President Donald Trump's financial market and international trade strategies have left partners guessing. This ex-real-estate tycoon's unique, high-pressure negotiation style makes it challenging to secure agreements with him.
© Bloomberg/Getty Images By Joseine Peloso General News Journalist oursite.com Published on
A new development. On April 22nd, Donald Trump unexpectedly announced the reduction of the 145% tariffs he had previously levied on Beijing earlier in the month. These tariffs were set to be significantly reduced, but not entirely lifted; the President made it clear that "we'll be very nice, they'll be very nice, and we'll see what happens." Yet, on the following Thursday, China dismissed any ongoing negotiations with Washington.
Flip-flopping tactics are a recurring pattern in Trump's political reign, mirroring the aggressive negotiations he employs straight from the pages of his best-selling 1987 book, "The Art of the Deal" co-authored with Tony Schwartz. Trump's strategies reflect his relentless pursuit to reach the top, borrowed from his real estate days and applied to his role as President of the United States.
Donald Trump: Comical yet Perilous Character ## Breaking Down His Strategy
Negotiation expert Julien Pelabiere characterizes Trump's approach as a total power play, akin to the "Overton window" approach. Trump often makes radical, seemingly unachievable propositions and repetition gradually wears down opposition, making the public perceive these ideas as more acceptable. By backtracking on the extreme proposals, Trump appears to be taking a more lenient approach, which can be perceived as "positive," Pelabiere explains.
Trump's style is marked by an extremely competitive stance. He is willing to jeopardize relationships with traditional allies to obtain maximum gains, like when he threatened Canada, a crucial economic partner, with becoming the 51st U.S. state. Pelabiere asserts that Trump sees "partners" as entities that orbit rather than engage equally alongside him. Moreover, Pelabiere points out that Trump displays little regard for ethics in negotiations and is not hesitant to spread misinformation or reverse his statements.
Exploring Trump's Communication Mastery
Discussing Trump's communication style, Pelabiere highlights his knack for presenting situations in black-and-white, good vs. evil, simplicity that resonates with his base. His statements often lack coherence, leading to skepticism regarding his long-term strategy. Trump is a seasoned bluffer, adept at creating a sense of urgency and making threats, isolating opponents and pushing them to make concessions.
Navigating Negotiations with Trump
But how does one deal with a President who disregards allies and neglects ethics in negotiations? Pelabiere suggests three options: engaging in a power struggle that could result in escalation, appealing to the law but facing difficulty given Trump's privileged status, or attempting to exit the negotiation. As soon as this becomes unlikely, a negotiation turns into submission, Pelabiere claims. To regain leverage and the power to say 'no', partners must regain their autonomy, asserting Pelabiere.
In Pelabiere's opinion, the effectiveness of Trump's method is questionable. The technique may spark fear and a lack of confidence; however, it does not necessarily erode Trump's negotiating power in the short term. In the long run, the unorthodox strategy could become less efficient.
In conjunction with this article: Donald Trump, Canada-US relations, Trade War, Stock Market.
- Despite the average investor's apprehensions, President Trump's announcement to simplify earlier tariffs on Sino-American trade may signal a new policy-and-legislation direction, suggesting a shift in the ongoing war-and-conflicts of business tariffs.
- The President's political approach, resembling a high-stakes power game, often involves a trade off between tariffs and partnerships, creating uncertainty in the international business arena.
- Trump's style, reminiscent of a general in political warfare, instead of cooperative diplomacy, can be seen as a Sino-American tariff strategy driven by politics, rather than an average economic policy.
- Despite the seemingly flip-flopping tactics in Trump's financial market strategies, many analysts argue that his simplistic approach to tariffs and negotiations may underscore a more complex and calculated policy-and-legislation strategy.
- The continuous announcement and reversal of tariffs by President Trump highlights the challenge of engaging in business with such a leader, who embraces a power-play artistry, often found in politics rather than the boardroom.
