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Washington has exerted influence on the Thai administration 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.

Rising Border Hostilities

In recent days, Thailand declared it was putting on hold the truce agreement, alleging Cambodian forces of laying fresh landmines along the shared border, among them an incident that allegedly injured a Thai soldier on patrol, who lost a foot in the explosion.

Following this, a fatality occurred and several others wounded by gunfire along the border between the two nations, sparking fears of a new round of retaliatory clashes.

American Economic Leverage

Over the weekend, a representative from Thailand's foreign office told journalists that a letter 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 stating that discussions on trade – which are focusing on a 19 percent American duty – could resume once the Thai government reaffirmed its commitment to implementing the mutual truce agreement.

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

President’s Economic Warning

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 used the “threat of tariffs” in calls with the ASEAN nation heads.

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

Trump oversaw the signing of a peace deal, held in Malaysia this October, and has promoted it as one of multiple agreements around the world he claims should earn him the Nobel Peace prize.

The worst fighting in a decade between Thai and Cambodian troops broke out in mid-summer, with gunfire, artillery and airstrikes leaving dozens of people killed and 300,000 displaced.

Longstanding Border Dispute

The two neighboring countries have a longstanding border dispute that dates back to disagreements over maps from the colonial period drawn up by the French. Historic shrines along the border are claimed by both sides.

Reuters provided input for this coverage.