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

Border Tensions Escalate

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

Following this, a fatality occurred and several others wounded by exchanges of fire along the border between the two nations, raising concerns of a fresh wave of retaliatory clashes.

US Trade Pressure

On Saturday, a Thai foreign ministry spokesperson informed reporters that a letter from the U.S. trade office announcing the suspension of trade deal talks was received on the previous evening.

He quoted the letter as stating that trade negotiations – which are focusing on a 19 percent American duty – could resume once Thailand reaffirmed its commitment to carrying out the mutual truce agreement.

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

President’s Economic Warning

Speaking to the press aboard the presidential plane as he flew to Florida on Friday, Trump suggested that he had employed tariff warnings 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’re doing great. I think they’re gonna be fine.”

Ceasefire Agreement Background

The President witnessed the finalization of a peace deal, held in Malaysia this October, and has promoted it as one of multiple agreements around the world he says should earn him the Nobel Peace prize.

The most severe clashes in a ten years between military forces of both nations 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 conflicts regarding colonial-era maps drawn up by the French. Ancient temples along the border are claimed by both sides.

Reuters provided input for this coverage.