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Washington has exerted influence on the Thai administration to reaffirm its dedication to a ceasefire agreement with the Cambodian side, stating that trade negotiations could be suspended as efforts are made to prevent a Trump-mediated peace agreement from collapsing.

Rising Border Hostilities

In recent days, Thai officials announced it was putting on hold the truce agreement, accusing Cambodia of laying fresh landmines along the shared border, among them an incident that reportedly wounded a Thai military personnel on duty, who suffered a foot amputation in the explosion.

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

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson informed reporters that a official communication from the U.S. trade office announcing the suspension of trade deal talks was obtained on the previous evening.

He quoted the letter as saying that trade negotiations – which are addressing a US tariff of 19% – could restart once Thailand reaffirmed its commitment to implementing the mutual truce agreement.

“Tariff negotiations will continue and remain separate from border issues,” stated a different official representative.

President’s Economic Warning

Addressing reporters on Air Force One as he flew to Florida on the end of the week, the US leader suggested that he had used the “threat of tariffs” in calls with the ASEAN nation heads.

He stated, “Today, I prevented a conflict using tariffs, the menace of duties,” adding, “they are performing well. I believe they will be okay.”

Truce Deal Origins

Trump oversaw the signing of a peace deal, conducted in Malaysian territory this October, and has promoted it as one of multiple agreements around the world he says should earn him the Nobel Peace prize.

The worst fighting in a ten years between military forces of both nations broke out in mid-summer, with exchanges of fire, shelling and aerial attacks causing numerous fatalities and hundreds of thousands forced to flee.

Historic Frontier Conflict

Thailand and Cambodia have a historic territorial disagreement that dates back to disagreements over maps from the colonial period drawn up by the French. Historic shrines along the border are claimed by both sides.

Reuters contributed to this report.