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The United States has applied pressure on the Thai administration to reaffirm its dedication to a ceasefire agreement with Cambodia, warning that trade negotiations could be halted as efforts are made to stop a Trump-mediated peace agreement from collapsing.

Border Tensions Escalate

Earlier this week, Thailand declared it was suspending the ceasefire deal, accusing Cambodian forces of laying fresh landmines along the mutual frontier, among them an incident that reportedly injured a Thai soldier on patrol, who suffered a foot amputation in the explosion.

Since then, a fatality occurred and multiple individuals injured by gunfire along the border between the two nations, sparking fears of a new round of retaliatory clashes.

American Economic Leverage

On Saturday, a representative from Thailand's foreign office told journalists that a official communication from the U.S. trade office announcing the pause in trade negotiations was obtained on the previous evening.

He quoted the document as stating that discussions on trade – which are addressing a 19 percent American duty – could restart once the Thai government reaffirmed its commitment to implementing the mutual truce agreement.

“Tariff negotiations will continue and remain separate from border issues,” said a different official representative.

President’s Economic Warning

Addressing reporters aboard the presidential plane as he flew to Florida on the end of the week, Trump implied that he had used the “threat of tariffs” 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’re doing great. I think they’re gonna be fine.”

Truce Deal Origins

Trump oversaw the signing of a peace deal, held in Malaysia this last autumn, and has touted it as one of multiple agreements around the globe he claims should earn him the prestigious peace award.

The most severe clashes in a ten years between Thai and Cambodian troops erupted in July, with exchanges of fire, shelling and aerial attacks causing numerous fatalities and 300,000 displaced.

Longstanding Border Dispute

The two neighboring countries have a historic territorial disagreement that dates back to disagreements over colonial-era maps drawn up by the French. Historic shrines along the frontier are claimed by both sides.

Reuters provided input for this coverage.