When tariffs are used as negotiation tools, companies often react rather than prepare. But what if businesses could turn trade restrictions into strategic advantages?
By looking at how past trade battles—from William McKinley to Donald Trump—reshaped global commerce, companies today can develop the negotiation skills needed to thrive, no matter what happens next.
Key Takeaways (For Busy Readers!)
Tariffs are often used as political tools, not just economic policies. Both McKinley and Trump leveraged them to influence trade negotiations.
Rigid planning isn’t enough. Companies must prioritize preparation, ensuring they can adapt to shifting trade policies.
Negotiation skills are critical. Businesses that master strategic alliances, the Persuasion Paradox, and value-based negotiation can turn protectionist policies into opportunities.
Scotwork’s expert negotiation training helps businesses develop the agility to thrive in uncertain trade environments.
Tariffs as a Negotiation Tool: McKinley vs. Trump
Throughout U.S. history, tariffs have been more than just economic policies—they’ve been used as political and negotiation tools.
William McKinley (1897-1901): Focused on high tariffs to protect American industries while negotiating selective trade deals.
Donald Trump (2017-2021): Used tariffs as a bargaining chip in trade wars, especially with China, to push for stronger U.S. trade agreements.
Lesson for Businesses: Tariffs aren’t just about economics. They’re a lever in negotiation—understanding how they’re used can help companies negotiate more effectively in global trade discussions.
Planning vs. Preparation: The Critical Difference
Many companies focus too much on planning for specific tariff scenarios, rather than preparing for any negotiation challenge that may arise.
Planning = Developing a fixed strategy for known risks.
Preparation = Building adaptable negotiation skills to handle uncertainty.
If your business is only planning, you’re vulnerable. But if you prepare, you stay in control.
Negotiation Strategies for Businesses Facing Tariffs
Build Strategic Alliances
Partner with local firms or invest in U.S. production to mitigate tariffs.
Example: After Trump’s steel tariffs, some European manufacturers opened factories in the U.S., reducing trade costs.
Negotiation Tip from Scotwork: Use coalition-building techniques—align with industry groups and policy influencers to negotiate exemptions or favorable trade terms.
Diversify Your Supply Chain
Explore alternative manufacturing locations to avoid tariff-heavy regions.
Example: Many companies shifted prouction from China to Vietnam and Mexico to navigate U.S.-China trade tensions.
Negotiation Tip from Scotwork: Use contingency planning as leverage. When negotiating, show multiple sourcing strategies to strengthen your position.
Apply the Persuasion Paradox
Instead of pushing harder, create space for the other side to come to you.
Example: When Japanese carmakers faced U.S. tariffs in the 1980s, they didn’t resist—they opened U.S.factories, created jobs, and reshaped negotiations in their favor.
Negotiation Tip from Scotwork: Instead of escalating, present multiple options and allow the other party to arrive at a conclusion that aligns with mutual interests.
Shift Focus from Price to Value
Don’t just negotiate based on price—emphasize quality, reliability, and innovation.
Example: European automakers affected by Trump’s tariffs focused on their brand prestige and advanced technology, rather than just cutting costs.
Negotiation Tip from Scotwork: Shift from price-based talks to value-based selling to justify premium positioning in tariff-heavy markets.
From Reactive to Proactive: The Scotwork Advantage
Trade policies will always change, but your negotiation skills don’t have to be left to chance.
Businesses that prepare—not just plan—will be the ones that thrive.
If you want to master negotiation techniques that turn trade challenges into opportunities, Scotwork’s training can give you the strategic edge you need.
Are you ready to negotiate smarter? Let’s talk.