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Washington has exerted influence on the Thai administration to reaffirm its dedication to a ceasefire agreement with Cambodia, stating that trade talks could be halted as efforts are made to prevent a Trump-mediated peace agreement from falling apart.

Rising Border Hostilities

In recent days, Thai officials declared it was putting on hold the ceasefire deal, alleging Cambodia of planting new explosives along the shared border, including one that allegedly wounded a Thai soldier on patrol, who suffered a foot amputation in the blast.

Following this, one person has been killed and several others wounded by gunfire along the Thai-Cambodia frontier, 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 letter from the Office of the US Trade Representative announcing the pause in trade negotiations was received on the previous evening.

The spokesperson referenced the document as saying that discussions on trade – which are focusing on a US tariff of 19% – 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 a different official representative.

President’s Economic Warning

Addressing reporters on Air Force One as he flew to Florida on Friday, the US leader implied 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 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 win him the Nobel Peace prize.

The most severe clashes in a decade between military forces of both nations erupted in July, with gunfire, artillery and airstrikes leaving dozens of people killed and 300,000 displaced.

Historic Frontier Conflict

Thailand and Cambodia 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 contributed to this report.