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Washington has exerted influence on Thailand to recommit to a ceasefire agreement with Cambodia, indicating that trade talks could be halted as attempts are made to stop a Trump-mediated ceasefire arrangement from collapsing.

Border Tensions Escalate

Earlier this week, Thailand announced it was suspending the ceasefire deal, alleging Cambodia of planting new explosives along the mutual frontier, among them an incident that reportedly injured a Thai soldier on duty, who suffered a foot amputation in the blast.

Since then, a fatality occurred and several others wounded by gunfire along the border between the two nations, raising concerns of a new round of retaliatory clashes.

American Economic Leverage

Over the weekend, a representative from Thailand's foreign office informed reporters that a official communication from the U.S. trade office declaring the pause in trade negotiations was received on the previous evening.

The spokesperson referenced the document as stating that trade negotiations – which are focusing on a US tariff of 19% – could resume once the Thai government reaffirmed its commitment to implementing the mutual truce agreement.

“Tariff negotiations will continue and remain separate from border issues,” stated another government spokesperson.

President’s Economic Warning

Addressing reporters aboard the presidential plane as he flew to Florida on the end of the week, the US leader implied that he had used the “threat of tariffs” in calls with the south-east Asian leaders.

He stated, “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 ceasefire agreement, conducted in Malaysian territory this October, and has promoted it as one of several deals around the world he claims should earn him the Nobel Peace prize.

The worst fighting in a ten years between Thai and Cambodian troops broke out in mid-summer, with gunfire, artillery and airstrikes causing numerous fatalities and hundreds of thousands forced to flee.

Longstanding Border Dispute

The two neighboring countries have a longstanding border dispute that dates back to disagreements over colonial-era maps drawn up by the French. Historic shrines along the frontier are claimed by both sides.

Reuters provided input for this coverage.