By Dr Mohan Kumar

October 27, 2025

Almost a year into Trump 2.0, we are getting a fair glimpse into the negotiating strategy adopted by various powers, big and small vis-a-vis the US. It offers lessons both in psychology and leadership. Countries can be broadly divided into the following categories. Obviously the list is illsutrative and not exhaustive.

1. Leverage: There are very few powers at this point which have real leverage vis-a-vis President Trump and the US. But China is certainly one of them. Two of the most potent levers that it has (among many) is the large amount of Agriculture products that it buys from the US (Soy for example) or the fact that it has near-total control over rare earth elements and is willing to use it for negotiating purposes with the US. All this has meant that the American team negotiating with China has had to be extremely flexible and reasonable. Indeed, even before Trump and Xi Jinping are to meet in a couple of days from now, the Americans have had to concede that the 100 per cent tariffs threatened by Trump is off the table. This kind of negotiating tactic from Trump and his team is unprecedented, but entirely undertsandable given the extraordinary leverage possessed by China.
2. Tough Love: US allies like the EU, Japan and Korea have been subject to what can only be described as “tough love”. President Trump’s prescription has been straightforward to these allies: no more free riding and please pay for services rendered ( tangible, intangible and with retrospective effect) to you by the US. In the process, President Trump has single-handedly shaken-up the “alliance system” in place for several years. Australia which was intially impacted, has gotten away with it only because of the critical minerals and rare earths that it has and has signed a deal with the US.
3. Flattery: Some countries have decided, ab initio, that flattery, capitulation and behaving obsequiously is the best way to deal with President Trump. Pakistan best exemplifies this strategy and has used it to its apparent benefit. Whether this is a viable long-term strategy that will continue to pay is something that only time will tell.
4. The put-down: Countries like Canada, Panama and Denmark have had to suffer public “put-down” by President Trump. Canada has often been asked to become the 51st State of the US, Panama has been asked to disown a canal and Denmark has been told to part with Greenland. Despite this, these countries have continued to negotiate with the US, even while maintaining their national dignity.
5. Non-capitulation and passive resistance: Brazil and India may not have retaliated against some of the highest punitive tariffs imposed on them by President Trump, but they have not capitulated either and continue to negotiate in good faith. Brazil and India may lack the leverage possessed by China, but they do have some geopolitical clout and not inconsiderable economic heft. Whether their negotiating strategy based on passive resistance will succeed, we will know sooner rather than later.
6. Confrontation: That leaves Russia, the recalcitrant big power that appears determined not to allow President Trump a diplomatic victory in the matter of the conflict in Ukraine. But then, it could also be argued that Russia’s case is sui generis since there are already sanctions against it and it has very little to lose by taking a tough line against President Trump and the US. This has caused a fair bit of angst (if not anger) in Trump who has consequently flip-flopped on his approach to Putin and Russia.

In conclusion, it is difficult to contend that there is one successful negotiating strategy vis-a-vis President Trump. Sure, if you have real leverage and are ready to use it, Trump gets that almost immediately and reacts accordingly. This is unsurprising, since his diplomacy has been described by many as transactional in nature. For the others without substantial leverage, negotiating strategy is a function of whatever strengths they have, how much strategic resilience they possess and the extent of loss they are willing to tolerate.

Dr Mohan Kumar is Director General of the newly established Motwani Jadeja Institute for American Studies housed in OP Jindal Global University. Views are personal.