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Washington has exerted influence on Thailand to recommit to a ceasefire agreement with the Cambodian side, warning that trade negotiations could be halted as efforts are made to stop a Trump-mediated peace agreement from collapsing.

Rising Border Hostilities

Earlier this week, Thailand announced it was putting on hold the truce agreement, accusing Cambodian forces of planting new explosives along the shared border, including one that allegedly injured a Thai soldier on patrol, who lost a foot in the blast.

Since then, one person has been killed and multiple individuals injured by exchanges of fire along the Thai-Cambodia frontier, 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 declaring the suspension of trade deal talks was received on Friday night.

The spokesperson referenced the document as stating that trade negotiations – which are focusing on a US tariff of 19% – could restart once Thailand renewed its pledge to implementing the mutual truce agreement.

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

President’s Economic Warning

Speaking to the press 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 south-east Asian leaders.

The US president said, “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 ceasefire agreement, held in Malaysia this October, and has touted it as one of several deals around the world he claims should earn him the Nobel Peace prize.

The most severe clashes in a ten years between military forces of both nations erupted in July, with exchanges of fire, shelling and aerial attacks leaving dozens of people killed and 300,000 displaced.

Longstanding Border Dispute

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

Reuters contributed to this report.