The Art of Negotiation: Lessons from International Diplomacy for Everyday Business

Whether you’re negotiating with a supplier, securing a new client, or navigating a difficult partnership, the ability to negotiate effectively can shape the future of your business. Great negotiators understand that it’s not just about what you say—but when you choose to remain silent, when you assert yourself, and when you decide to walk away.

The recent high-profile meeting between Canadian Prime Minister Mark Carney and former U.S. President Donald Trump showcased a compelling display of strategic negotiation. While the stakes were geopolitical, the tactics are equally applicable in boardrooms, coffee shops, and Zoom calls across the business world.

Here are four timeless negotiation strategies, supported by yesterday's meeting and other real-world examples that every SMB owner should master.

KNOW WHEN TO HOLD YOUR CARDS CLOSE

Negotiation isn’t about saying everything up front—it’s about knowing what not to say until the timing is right.

In his May 2025 meeting with Donald Trump, Carney refused to be baited into a reactive back-and-forth when Trump made off-the-cuff comments suggesting Canada should consider becoming a U.S. state. Carney paused, then delivered a cool, firm line: “Canada is not for sale.” Silence followed. There was no defensiveness; just clarity and control. Additionally, he often brought humour into the negotiation, which proved to be an effective tool.

💡 Key Takeaway: Don’t reveal your entire budget, margin, or timeline too early. Let the other party show their hand first when possible. A well-placed pause can signal confidence and often pushes the other side to overplay their position.

Use Silence as a Strategic Tool

Silence isn’t awkward—it’s powerful.

Chris Voss, former FBI negotiator and author of Never Split the Difference, emphasizes the value of calibrated silence. “He who has the most flexibility controls the conversation,” he says. Voss often recommends “mirroring” and pausing three seconds after key phrases—just enough time to make the other side feel compelled to fill the space.

💡 Key Takeaway: In negotiations, silence can make your counterpart rethink, clarify, or sweeten the deal. Practice intentional pauses during price talks or contract reviews. You’ll be surprised how often it shifts momentum your way.

Lean In at the Right Time

Negotiation isn’t passive. At critical moments, you must step in to shape the conversation.

During their discussion, Carney strategically pushed back when Trump claimed the U.S. subsidized Canada by $200 billion a year. Rather than ignore the statement, Carney leaned in and presented data showing that Canada is the #1 export market for 36 U.S. states and a crucial trading partner. His assertiveness redirected the narrative. 

💡 Key Takeaway: When a client or vendor brings faulty assumptions to the table, don’t avoid the issue. Counter with facts, not emotion if you’re negotiating a scope of work or payment terms, back up your position with value, benchmarks, or testimonials.

KNOW WHEN TO WALK - OR PIVOT

Not every deal is worth closing. The best negotiators understand when to prioritize long-term value over short-term gains.

Consider Howard Schultz, the former CEO of Starbucks. During the initial stages of expansion, he walked away from real estate deals, even in prime locations, when landlords insisted on profit-sharing. His decision to wait for better terms preserved margins and reinforced brand discipline.

💡 Key Takeaway: If a contract undermines your values, team capacity, or long-term sustainability … step back. It’s okay to forgo a deal that doesn’t align with your strategic goals.

Negotiation by the Numbers

• 74% of small business owners say they regularly negotiate with vendors or suppliers, but only 38% feel confident doing so (Quickbooks).

• Businesses that train staff in negotiation skills see an average 7% improvement in profitability (Harvard Business Review).

• Companies that delay revealing their “bottom line” typically increase deal size by 11–15% (McKinsey Insights).

Conclusion: Negotiation Is a Discipline, Not a Duel

Great negotiators aren’t born—they’re made. Whether leading a country or running a local business, the principles remain the same: be strategic, intentional, and willing to listen as much as you speak.

In the end, negotiation is less about winning and more about aligning interests without losing value. And that’s an art every business owner can master.