Apr 29, 2018

The one-trick pony: Inside Trump's negotiating style

Illustration: Lazaro Gamio/Axios

President Trump tells people he keeps the world guessing with his wild unpredictability. But those who work most closely with him say he's a one-trick pony in negotiations.

The trick: Threaten the outrageous, ratchet up the tension, amplify it with tweets and taunts, and then compromise on fairly conventional middle ground.

​“His ultimate gamble is: 'You don’t have as big of stones as I do,'" a source close to Trump told me. "'You’re going to feel too uncomfortable where I go. The stakes are too high. This is too far outside your comfort zone.'"

Consider these threats: To withdraw from Syria (he reengaged with missile strikes), withdraw from Afghanistan (he settled on the more-of-the-same strategy recommended by his generals), withdraw from the U.S.-Korean trade deal (Trump's team negotiated with the Koreans and announced modest changes to the deal), veto the government spending bill (he signed it), and impose severe worldwide tariffs on steel and aluminum (he offered a bunch of exemptions).

  • Sources who've been in the room with Trump for negotiations over NATO and various trade deals tell me they've at times felt "awkward" watching Trump go in hard against foreign leaders.
  • They say Trump seems immune to awkwardness — but then rarely follows through on his most extreme rhetoric.

The next few weeks promise three more Trump tricks:

  1. After sending financial markets into a mass freakout over a trade war with China — which culminated in Trump's threatening China with $100 billion in tariffs — some senior officials, including Treasury Secretary Steven Mnuchin, are cautiously optimistic they'll find a compromise with Beijing. On Tuesday night, Mnuchin leads a delegation to China to try to negotiate a way out of the trade war.
  2. Senior White House officials tell me a NAFTA deal could be "imminent" — meaning, an announcement could come in the next few days. Trump's team is still negotiating and views Canada as a major problem, but we're a far cry from a year ago when Trump's aides were telling us he was hellbent on terminating NAFTA.
  3. Last August, the world braced for nuclear apocalypse as Trump threatened "fire and fury" against North Korea. And less than four months ago, Trump tweeted that his nuclear button is "much bigger & more powerful" than Kim Jong-un's. Now, we're anticipating peace talks on the Korean Peninsula.

Why it can still work: Trump has followed through on just enough of his threats to keep a tincture of doubt in people's minds. He withdrew from the Paris climate accord, for example, and tried to end DACA (though the courts have temporarily shielded the program). And the internal White House consensus is that he'll blow up the Iran nuclear deal. But as a general rule, Trump’s rhetoric is usually just posturing.

Go deeper: This week will pose a big test of Trump's negotiating predictability.

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The cost of going after Bloomberg

Illustration: Eniola Odetunde/Axios

Here's the growing dilemma for 2020 Democrats vying for a one-on-one showdown with frontrunner Bernie Sanders: Do they have the guts — and the money — to first stop Mike Bloomberg?

Why it matters: Joe Biden, Pete Buttigieg, Amy Klobuchar and Elizabeth Warren all must weigh the costs of punching Bloomberg where he looks most vulnerable: stop-and-frisk, charges of sexism, billionaire entitlement. The more zealous the attacks, the greater the risk he turns his campaign ATM against them.

How Trump’s economy stacks up

Source: "Presidents and US Economy", Trump figures through 2019 courtesy of Alan Blinder; Note: Data shows real GDP and Q1 growth in each term is attributed to the previous president; Chart: Axios Visuals

Average economic growth under President Trump has outpaced the growth under Barack Obama, but not all of his recent predecessors.

Why it matters: GDP is the most comprehensive economic scorecard — and something presidents, especially Trump, use as an example of success. And it's especially relevant since Trump is running for re-election on his economic record.

Coronavirus cases rise as 14 American evacuees infected

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's NHC; Note: China refers to mainland China and the Diamond Princess is the cruise ship offshore Yokohama, Japan. Map: Danielle Alberti/Axios

14 Americans evacuated from the Diamond Princess cruise ship tested positive for the novel coronavirus before being flown in a "specialist containment" on a plane repatriating U.S. citizens back home, the U.S. government said early Monday.

The big picture: COVID-19 has now killed at least 1,770 people and infected almost 70,000 others. Most cases and all but five of the deaths have occurred in mainland China. Taiwan confirmed its first death on Sunday, per multiple reports, in a 61-year-old man with underlying health conditions. Health officials were investigating how he became ill.

Go deeperArrowUpdated 5 hours ago - Health