Whether it is attempting to help end hostilities in Ukraine and Gaza or to improve the United States’ trade position in the world, President Donald Trump and his administration are currently involved in a multitude of high-stakes negotiations. No matter how one feels about President Trump and how he does things, we must all admit that he does know something about negotiating. Almost four decades ago, in 1987, well before he entered politics, he wrote (it was actually ghost-written by journalist Tony Schwartz) a memoir, Trump: The Art of the Deal, in which he discussed his philosophies and methods of negotiating. Taking a look at some of the key advice that President Trump gave us in that book is instructive as we negotiate in our businesses and our lives, and as we observe President Trump on the current world stage. While you might not agree with how he does certain things, I think we all can take some aspects of his advice and tailor it in a way that can make us more effective negotiators. Here are some of the key takeaways from The Art of the Deal and some other techniques I have observed from President Trump recently:
- Aim High: In the book, President Trump stresses that you need to shoot for the best that you can in a deal, and even if you end up with somewhat less than that, you will still end up with something desirable. I think this is a very reasonable negotiation technique. If you start out thinking too small, you are likely going to end up with less than you desire. While at times, President Trump’s initial positions may seem unrealistic and potentially outlandish, they do allow him more room for a positive outcome.
- Know Your Market: This might be one of the most important lessons in The Art of the Deal. You really need to understand your market better than everyone else in it. If you understand your market best, you are negotiating with the best information. I think this was one of President Trump’s weaknesses in his first term. He did not fully understand both how our government worked and the international stage. He has a much better grasp of that now, which improves his chances of better navigating these difficult waters. In business, we need to fully understand our customers, our competitors, our suppliers, and the overall business environment to enhance our opportunity for negotiation success.
- Use Your Leverage: As President Trump writes in “Art of the Deal, “The worst thing you can do in a deal is to seem desperate to make it.” You need to understand what the other side wants and needs and use that leverage to help cut a good deal for your side. I think we are seeing that as things progress in Ukraine, Gaza, and the latest tariff deals with China.
- Maximize Your Options: In his book, President Trump writes, “I always protect myself by being flexible.” While this can seem frustrating to us, and more importantly to financial markets, President Trump has shown himself to be nimble when it comes to many of these negotiations. While he tends to exhibit much bluster publicly, lately, he seems to be more amenable to win-win solutions with the United Kingdom, Canada, and China. While sometimes he seems intransigent, he has demonstrated his flexibility in his recent dealings.
In the almost forty years since The Art of the Deal was published, I am sure that President Trump has adopted additional negotiation techniques to his repertoire. I have noticed a couple of things he has done on the national and international stage that might be worth adopting as business negotiators:
- Respectful and Nicer to “Foes”: One of the more interesting things I have seen with President Trump is that he tends to say nice things about his most difficult foes; for instance, President Vladimir Putin of Russia and President Xi Jinping of China. While many Americans may be frustrated by President Trump’s perceived lack of toughness with these two leaders, I believe that President Trump has taken this stance in order to facilitate better negotiations in the future. My guess is that he believes tough rhetoric would delay and hinder future negotiations. My sense is that this is a good tactic that could at least allow negotiations to get started in the right direction. Making your negotiation partner mad is probably not a good idea.
- Unpredictability/Uncertainty: In my column in this space a few weeks ago, I made the point that President Trump’s tactics have created uncertainty that has roiled financial markets. However, I think he has used unpredictability to create uncertainty in the minds of those with whom he is negotiating. I think this has allowed him to throw them somewhat off balance, providing him with some advantage in negotiations. I think this can be helpful in negotiations because the uncertainty of your actions can make it more difficult for your “opponent.”
Whether we agree or disagree with President Trump’s policies, we can learn from how he negotiates. I recommend observing what he does with a critical eye and potentially adopting some of his negotiation techniques that you find both effective and fit how you would like to do business.
