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The United States has applied pressure on Thailand to reaffirm its dedication to a ceasefire agreement with the Cambodian side, warning that trade talks could be paused as efforts are made to stop a Donald Trump-brokered peace agreement from falling apart.

Border Tensions Escalate

In recent days, Thailand declared it was putting on hold the ceasefire deal, accusing Cambodian forces of planting new explosives along the mutual frontier, among them an incident that reportedly injured a Thai soldier on duty, who lost a foot in the explosion.

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

American Economic Leverage

Over the weekend, a representative from Thailand's foreign office told journalists that a official communication from the Office of the US Trade Representative declaring the pause in trade negotiations was received on the previous evening.

He quoted the letter as saying that trade negotiations – which are focusing on a US tariff of 19% – could restart once the Thai government renewed its pledge to implementing the joint ceasefire declaration.

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

President’s Economic Warning

Speaking to the press on Air Force One as he flew to Florida on Friday, Trump implied that he had used the “threat of tariffs” in calls with the south-east Asian leaders.

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

Truce Deal Origins

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 world he claims should win him the Nobel Peace prize.

The most severe clashes in a decade between Thai and Cambodian troops erupted in mid-summer, with exchanges of fire, shelling and aerial attacks leaving dozens of people killed and hundreds of thousands forced to flee.

Historic Frontier Conflict

The two neighboring countries have a longstanding border dispute that originates from conflicts regarding maps from the colonial period drawn up by the French. Historic shrines along the border are disputed by each nation.

Reuters provided input for this coverage.