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Washington has exerted influence on Thailand to reaffirm its dedication to a ceasefire agreement with Cambodia, indicating that trade talks could be paused as efforts are made to stop a Trump-mediated ceasefire arrangement from collapsing.

Border Tensions Escalate

Earlier this week, Thailand declared it was suspending the ceasefire deal, accusing Cambodia of planting new explosives along the mutual frontier, including one that reportedly wounded a Thai military personnel on duty, who lost a foot in the blast.

Following this, a fatality occurred and multiple individuals injured by exchanges of fire along the border between the two nations, sparking fears 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 Office of the US Trade Representative announcing the pause in trade negotiations was obtained on the previous evening.

The spokesperson referenced the document as stating that discussions on trade – which are addressing a US tariff of 19% – could restart once Thailand reaffirmed its commitment to implementing the mutual truce agreement.

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

Trump’s Tariff Threat

Addressing reporters on Air Force One as he traveled to the Sunshine State on the end of the week, Trump implied that he had used the “threat of tariffs” in calls with the ASEAN nation heads.

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.”

Ceasefire Agreement Background

The President witnessed the finalization of a peace deal, held in Malaysia this October, and has promoted it as one of several deals around the globe he claims should win him the Nobel Peace prize.

The most severe clashes in a decade between military forces of both nations erupted in mid-summer, with exchanges of fire, shelling and aerial attacks causing numerous fatalities and 300,000 displaced.

Longstanding Border Dispute

Thailand and Cambodia have a longstanding border dispute that originates from conflicts regarding maps from the colonial period drawn up by the French. Ancient temples along the frontier are disputed by each nation.

Reuters contributed to this report.