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Washington has exerted influence on the Thai administration to recommit to a truce deal with Cambodia, indicating that trade negotiations could be paused as efforts are made to prevent a Trump-mediated peace agreement from collapsing.

Border Tensions Escalate

In recent days, Thailand announced it was putting on hold the truce agreement, alleging Cambodia of planting new explosives along the mutual frontier, among them an incident that reportedly wounded a Thai military personnel on duty, who lost a foot in the blast.

Since then, one person has been killed and multiple individuals injured by exchanges of fire along the Thai-Cambodia frontier, sparking fears 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 Office of the US Trade Representative announcing the suspension of trade deal talks was received on the previous evening.

He quoted the letter as saying that discussions on trade – which are addressing a US tariff of 19% – could resume once Thailand renewed its pledge to implementing the mutual truce agreement.

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

President’s Economic Warning

Speaking to the press aboard the presidential plane as he traveled to the Sunshine State on the end of the week, the US leader suggested that he had used the “threat of tariffs” in discussions with the south-east Asian leaders.

The US president said, “Today, I prevented a conflict using tariffs, the menace of duties,” adding, “they’re doing great. I think they’re gonna be fine.”

Truce Deal Origins

The President witnessed the finalization of a ceasefire agreement, held in Malaysia this last autumn, and has promoted it as one of multiple agreements around the world he claims should win him the Nobel Peace prize.

The worst fighting in a decade between Thai and Cambodian troops erupted in July, with gunfire, artillery and airstrikes leaving dozens of people killed and hundreds of thousands forced to flee.

Longstanding Border Dispute

Thailand and Cambodia have a historic territorial disagreement that originates from disagreements over colonial-era maps drawn up by the French. Historic shrines along the frontier are disputed by each nation.

Reuters provided input for this coverage.