The US President Compels the Thai government to Reaffirm Commitment to Cambodia Ceasefire with Trade Penalties

Washington has exerted influence on Thailand to recommit to a truce deal with the Cambodian side, indicating that trade talks could be paused as attempts are made to stop a Donald Trump-brokered peace agreement from falling apart.

Border Tensions Escalate

In recent days, Thai officials declared it was suspending the truce agreement, accusing Cambodia of planting new explosives along the shared border, among them an incident that allegedly wounded a Thai military personnel on duty, who suffered a foot amputation in the blast.

Since then, one person has been killed and multiple individuals injured by gunfire along the border between the two nations, raising concerns of a fresh wave of tit-for-tat fighting.

US Trade Pressure

Over the weekend, a representative from Thailand's foreign office told journalists that a letter from the U.S. trade office announcing the suspension of trade deal talks was received on the previous evening.

He quoted the document as saying that discussions on trade – which are addressing a US tariff of 19% – could restart once the Thai government reaffirmed its commitment to implementing the joint ceasefire declaration.

“Trade talks are ongoing and distinct from frontier matters,” stated a different official representative.

Trump’s Tariff Threat

Addressing reporters on Air Force One as he flew to Florida on the end of the week, Trump implied that he had employed tariff warnings in calls 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.”

Ceasefire Agreement Background

The President witnessed the finalization of a peace deal, conducted in Malaysian territory this October, and has touted it as one of several deals around the globe he claims should win him the prestigious peace award.

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

Historic Frontier Conflict

Thailand and Cambodia have a longstanding border dispute that dates back to conflicts regarding maps from the colonial period created by French cartographers. Historic shrines along the frontier are claimed by both sides.

Reuters contributed to this report.