Analysis of Trade Negotiation Strategies

I think he's created a lot of leverage

because he's created an A-B situation.

He is able to go to the trading partners and say,

look, I am happy to take in this tariff income

if you don't want to negotiate.

This is a high rate, but the U.S.

is taking in massive amounts of tariff income.

We had the first June budget surplus since 2015 last month.

We reported it this month.

And so we are taking in substantial income.

So President Trump is creating this leverage by saying,

if you don't want to negotiate with me,

I've sent you a letter with a high rate.

Have at the high rate or come and negotiate in better fashion.

Because I'll tell you, what was fascinating for me,

and this was President Trump at his best,

was the Indonesians came with what I thought was

a very good offer out of the box.

President Trump kept pushing them.

He raised the reciprocal rate when he sent them the letter.

And five iterations later, the Indonesian trade deal was greatly improved,

turned into a great deal for both sides.