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The United States has applied pressure on the Thai administration to recommit to a ceasefire agreement with the Cambodian side, indicating that trade talks could be halted as attempts are made to prevent a Trump-mediated ceasefire arrangement from collapsing.

Border Tensions Escalate

In recent days, Thai officials announced it was suspending the ceasefire deal, accusing Cambodian forces of planting new explosives along the shared border, among them an incident that allegedly wounded a Thai military personnel on duty, who lost a foot in the blast.

Since then, a fatality occurred and multiple individuals injured by exchanges of fire along the border between the two nations, sparking fears of a fresh wave of tit-for-tat fighting.

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson told journalists that a letter from the U.S. trade office announcing the pause in trade negotiations was received on Friday night.

The spokesperson referenced the letter as saying that discussions on trade – which are addressing a US tariff of 19% – could restart once Thailand reaffirmed its commitment to implementing the joint ceasefire declaration.

“Trade talks are ongoing and distinct from frontier matters,” said a different official representative.

President’s Economic Warning

Addressing reporters on Air Force One as he traveled to the Sunshine State on Friday, the US leader implied that he had used the “threat of tariffs” in discussions with the south-east Asian leaders.

The US president said, “I stopped a war just today through the use of tariffs, the threat of tariffs,” continuing, “they are performing well. I believe they will be okay.”

Ceasefire Agreement Background

The President witnessed the finalization of a peace deal, conducted in Malaysian territory this October, and has touted it as one of multiple agreements around the globe he claims should win him the prestigious peace award.

The most severe clashes in a ten years between military forces of both nations broke out in July, with gunfire, artillery and airstrikes leaving dozens of people killed and hundreds of thousands forced to flee.

Longstanding Border Dispute

The two neighboring countries have a historic territorial disagreement that dates back to conflicts regarding maps from the colonial period drawn up by the French. Historic shrines along the border are disputed by each nation.

International news agency provided input for this coverage.