Wharton Business Daily
Understanding Trump’s Tariff Tactics Through the Lens of Negotiation
Apr 30, 2025
08:00
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Quick takeaways
- Leverage in negotiation is crucial, with perceptions shaping who holds power, which Trump skillfully manipulates to gain advantages.
- Trump's transactional negotiation style emphasizes short-term gains and utilizes aggressive tactics like tariffs, often undermining trust and collaboration.
Deep dives
The Role of Leverage in Negotiation
Leverage is a critical aspect of negotiation, determining who has more or less to lose from a deal not being reached. This concept requires understanding how perceptions shape that leverage and who manipulates it effectively. President Trump has demonstrated a talent for altering perceptions to gain situational advantages, using tactics that create an impression of higher costs for opponents in negotiation. His approach suggests a strategic manipulation reminiscent of traditional business practices where imposing costs led to more favorable outcomes.
