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Washington has exerted influence on the Thai administration to reaffirm its dedication to a ceasefire agreement with the Cambodian side, warning that trade talks could be suspended as efforts are made to stop a Trump-mediated peace agreement from falling apart.

Border Tensions Escalate

Earlier this week, 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 reportedly wounded a Thai military personnel on patrol, who lost a foot in the blast.

Following this, a fatality occurred and multiple individuals injured by exchanges of fire along the Thai-Cambodia frontier, sparking fears of a fresh wave of retaliatory clashes.

US Trade Pressure

Over the weekend, a representative from Thailand's foreign office informed reporters that a letter from the U.S. trade office announcing the suspension of trade deal talks was received on the previous evening.

The spokesperson referenced the letter as stating that trade negotiations – which are addressing a 19 percent American duty – could restart once Thailand reaffirmed its commitment to carrying out 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 traveled to the Sunshine State on Friday, the US leader suggested that he had used the “threat of tariffs” in discussions with the ASEAN nation heads.

The US president said, “Today, I prevented a conflict using tariffs, the menace of duties,” continuing, “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 last autumn, and has touted it as one of several deals around the globe he claims should win him the Nobel Peace prize.

The worst fighting in a ten years between Thai and Cambodian troops broke out in mid-summer, with gunfire, artillery and airstrikes leaving dozens of people killed and hundreds of thousands forced to flee.

Historic Frontier Conflict

The two neighboring countries have a historic territorial disagreement that originates from disagreements over maps from the colonial period created by French cartographers. Ancient temples along the frontier are claimed by both sides.

Reuters provided input for this coverage.