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

Rising Border Hostilities

In recent days, Thailand declared it was putting on hold the truce agreement, accusing Cambodian forces of planting new explosives along the mutual frontier, among them an incident that allegedly injured a Thai soldier on duty, who lost a foot in the blast.

Following this, a fatality occurred and several others wounded by gunfire along the Thai-Cambodia frontier, raising concerns of a fresh wave of retaliatory clashes.

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson told journalists that a official communication from the U.S. trade office declaring the suspension of trade deal talks was received on the previous evening.

He quoted the letter as stating that discussions on trade – which are addressing a 19 percent American duty – could resume once Thailand reaffirmed its commitment to carrying out the joint ceasefire declaration.

“Trade talks are ongoing and distinct from frontier matters,” said another government spokesperson.

Trump’s Tariff Threat

Addressing reporters on Air Force One as he flew to Florida on the end of the week, the US leader implied that he had employed tariff warnings in discussions with the ASEAN nation heads.

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.”

Truce Deal Origins

The President witnessed the finalization of a ceasefire agreement, conducted in Malaysian territory this October, and has promoted 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 erupted in July, 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 originates from disagreements over colonial-era maps drawn up by the French. Historic shrines along the border are claimed by both sides.

Reuters provided input for this coverage.