Wharton Business Daily Understanding Trump’s Tariff Tactics Through the Lens of Negotiation
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Apr 30, 2025 AI Snips
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Leverage Drives Trump's Negotiation
- Leverage in negotiation means who has more to lose if no deal happens, and it is always relative.
- Trump excels at manipulating perceptions to create situational leverage for himself.
Tariffs As Tactical Pressure
- Trump's tariff strategy is a tactic to impose costs and shift negotiation power by worsening the no-deal alternative.
- He uses tariffs to pressure foreign producers hoping consumers will be less affected initially and bring counterparts to negotiate.
Litigation Parallels Tariff Strategy
- Trump's use of litigation in business was to impose costs and extract advantage, similar to his tariff strategy.
- Although aggressive, he likely prefers settlement over prolonged damage or war.