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Washington has exerted influence on Thailand to reaffirm its dedication to a ceasefire agreement with the Cambodian side, warning that trade negotiations could be paused as attempts are made to stop a Trump-mediated peace agreement from falling apart.

Rising Border Hostilities

Earlier this week, Thailand announced it was putting on hold the ceasefire deal, alleging Cambodian forces of laying fresh landmines along the mutual frontier, among them an incident that allegedly injured a Thai soldier on duty, who lost a foot in the explosion.

Following this, one person has been killed and multiple individuals injured by gunfire along the Thai-Cambodia frontier, sparking fears of a fresh wave of tit-for-tat fighting.

American Economic Leverage

On Saturday, a representative from Thailand's foreign office informed reporters that a official communication from the Office of the US Trade Representative announcing the suspension of trade deal talks was obtained on the previous evening.

The spokesperson referenced the document as stating that trade negotiations – which are addressing a 19 percent American duty – could resume once the Thai government renewed its pledge to carrying out the joint ceasefire declaration.

“Trade talks are ongoing and distinct from frontier matters,” stated 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, the US leader suggested that he had employed tariff warnings in discussions with the south-east Asian leaders.

He stated, “I stopped a war just today through the use of tariffs, the threat of tariffs,” adding, “they’re doing great. I think they’re gonna be fine.”

Ceasefire Agreement Background

The President witnessed the finalization of a peace deal, conducted in Malaysian territory this last autumn, and has promoted it as one of several deals around the world he says should earn him the Nobel Peace prize.

The worst fighting in a decade between Thai and Cambodian troops broke out 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 dates back to conflicts regarding maps from the colonial period drawn up by the French. Ancient temples along the frontier are disputed by each nation.

International news agency provided input for this coverage.