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The United States has applied pressure on the Thai administration to recommit to a ceasefire agreement with Cambodia, warning that trade talks could be halted as efforts are made to prevent a Trump-mediated peace agreement from falling apart.

Border Tensions Escalate

In recent days, Thai officials announced it was suspending the ceasefire deal, accusing Cambodian forces of laying fresh landmines along the shared border, including one that allegedly injured a Thai soldier on duty, who suffered a foot amputation in the explosion.

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

American Economic Leverage

On Saturday, a representative from Thailand's foreign office told journalists that a official communication from the Office of the US Trade Representative announcing the pause in trade negotiations was obtained on Friday night.

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 reaffirmed its commitment to carrying out the joint ceasefire declaration.

“Trade talks are ongoing and distinct from frontier matters,” said another government spokesperson.

Trump’s Tariff Threat

Addressing reporters aboard the presidential plane as he flew to Florida on the end of the week, the US leader suggested that he had employed tariff warnings 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.”

Truce Deal Origins

The President witnessed the finalization of a ceasefire agreement, held in Malaysia this last autumn, and has touted it as one of several deals around the world he says should win him the Nobel Peace prize.

The worst fighting in a ten years between Thai and Cambodian troops erupted in mid-summer, with exchanges of fire, shelling and aerial attacks leaving dozens of people killed and 300,000 displaced.

Historic Frontier Conflict

The two neighboring countries have a longstanding border dispute that dates back to disagreements over colonial-era maps drawn up by the French. Ancient temples along the border are claimed by both sides.

Reuters contributed to this report.