Tactics in Bargaining: Timing and Methods for Assertive Threats
Negotiations in the Trump administration were often marked by unpredictability, with threats of new tariffs on Mexican goods being a prime example. According to Neil Irwin, such threats conveyed a sense of unpredictability, signalling that "No deal is ever a done deal."
When faced with such threats, it's crucial to maintain a calm demeanour and assess the true intent behind them. Determine if they are a tactical move or a genuine concern. Probing questions can help uncover underlying motivations, such as "What leads you to this conclusion?" or "How does this impact your goals?"
Silence can also be a powerful tool to defuse tension and allow time to think. A brief pause can make the other party reconsider their approach.
Ensuring psychological safety is equally important. Both parties should feel safe and understood. Avoid confrontational language and focus on shared interests to de-escalate tension.
Communicating your Best Alternative to a Negotiated Agreement (BATNA) and mentioning any connections within the other party's organization can act as a deterrent to aggressive tactics.
If delivering threats is necessary, frame your message as a condition rather than a threat. This can be more constructive and less confrontational, like "If we cannot agree on this term, we will have to explore other options." Emphasize the potential consequences of not reaching an agreement rather than issuing direct threats. Align any conditional statements with the shared goals or values of both parties to maintain a collaborative atmosphere.
Preparation and flexibility are key to successful negotiations. Understanding the counterpart's perspective, setting clear objectives, and being adaptable to changing circumstances are essential. Body language and tone also play a significant role. Use a calm, lower tone and maintain open body language to convey confidence and safety.
The Trump administration's approach to difficult negotiations often involved threatening drastic action. Donald Trump frequently employed threats as a negotiation tactic during his presidency, which painted the U.S. government as an unreliable negotiating partner. This pattern of threats can also convey to counterparts that they can be ignored or addressed with hollow promises.
When threats in negotiation are not effective, the process often repeats itself. For instance, Trump threatened to pull out of the Paris climate accord and the Iran nuclear deal. He also threatened to impose steel and aluminum tariffs on U.S. allies, withdraw U.S. troops from South Korea, and revoke a license from NBC.
Threats in negotiation can help break through an impasse when all efforts to foster collaboration have failed. However, they should convey that the party is prepared to follow through, be carefully crafted, allow both parties to exit with their pride intact, and express unambiguous consequences.
For those seeking advice on delivering and responding to threats in negotiation, Adam D. Galinsky and Katie A. Liljenquist provide valuable insights. The Program on Negotiation at Harvard Law School also offers a free special report on negotiation skills.
In May 2019, Trump threatened to impose punishing import tariffs on Mexican goods if Mexico didn't take new steps to stem the immigration crisis. He also threatened to close the Mexican border if Mexico didn't stop all illegal immigration. Trump even threatened to rewrite libel laws to punish perceived adversaries in the media.
These examples demonstrate the importance of understanding and effectively managing threats in negotiations. By employing these strategies, you can steer towards more collaborative and constructive outcomes.
- To effectively respond to threats in a negotiation, it's vital to probe the genuine intent behind them, using questions like "What leads you to this conclusion?" or "How does this impact your goals?"
- A successful negotiation strategy involves ensuring psychological safety, maintaining a calm demeanour, and focusing on shared interests to de-escalate tension.
- Communicating your Best Alternative to a Negotiated Agreement (BATNA) and mentioning any connections within the other party's organization can act as a deterrent to aggressive tactics.
- When delivering threats, framing your message as a condition rather than a threat can be more constructive and less confrontational, such as "If we cannot agree on this term, we will have to explore other options." Emphasize the potential consequences of not reaching an agreement while aligning conditional statements with shared goals or values.