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Washington has exerted influence on Thailand to reaffirm its dedication to a ceasefire agreement with Cambodia, warning that trade negotiations could be halted as attempts are made to prevent a Trump-mediated peace agreement from collapsing.

Rising Border Hostilities

Earlier this week, Thai officials announced it was suspending the truce agreement, alleging 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 blast.

Following this, one person has been killed and several others wounded by gunfire along the border between the two nations, sparking fears of a new round of retaliatory clashes.

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson told journalists that a letter from the Office of the US Trade Representative announcing the pause in trade negotiations was obtained on the previous evening.

The spokesperson referenced the document as saying that trade negotiations – which are focusing on a US tariff of 19% – could resume once the Thai government renewed its pledge to carrying out 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 flew to Florida on Friday, the US leader implied that he had employed tariff warnings in calls with the ASEAN nation heads.

He stated, “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

Trump oversaw the signing of a peace deal, held in Malaysia this October, and has touted it as one of several deals around the world he claims should win him the prestigious peace award.

The most severe clashes in a decade between Thai and Cambodian troops broke out in July, with gunfire, artillery and airstrikes causing numerous fatalities and 300,000 displaced.

Historic Frontier Conflict

Thailand and Cambodia have a historic territorial disagreement that originates from disagreements over maps from the colonial period created by French cartographers. Ancient temples along the frontier are disputed by each nation.

Reuters contributed to this report.