The traps that leaders fall into when dealing with hard bargainers like Trump, and what they should do instead
Trump’s hard-bargaining tactics are already used in the business world by those with a clear power advantage.
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United States President Donald Trump’s negotiation approach has upended international affairs, marking a radical change to previous decades of global diplomacy and leaving world leaders struggling to respond effectively. Many have failed to understand the strategy and moves Trump uses and have responded in suboptimal ways.
Trump’s hard-bargaining tactics are already used in the business world by those with a clear power advantage. If his presidency proves successful, his negotiation strategy may be emulated by business negotiators worldwide, and many will find themselves facing a Trump-like negotiator across the table. Unfortunately, most descriptions of Trump’s negotiation approach often fail to grasp critical nuances, leading negotiators to follow unproductive approaches.
So, how should you negotiate effectively with someone like Trump? Many world leaders seem to believe that they must either obtain more power than him (which is theoretically correct, but close to impossible for most to achieve in the short term), ignore the power difference altogether and attempt to negotiate as equals, or just give in to avoid the pain or risk of confronting his hard tactics and suffering his retaliations. These are three basic mistakes that will send any negotiator toward failure in this context.
To be clear, we are not supporting Trump’s negotiation approach, nor are we criticising it. Ultimately, we aim to help readers understand the methods he uses and negotiate the best possible outcome with those using similar tactics.
Trump, and those who use similar negotiation tactics, often follow what we define as the hard-bargaining approach. This typically involves applying one’s power advantage to extract value from the counterparty without much consideration for the relationship or their perception of fairness.
[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2025]