Trump Urges the Thai government to Recommit to Cambodian Ceasefire with Trade Penalties

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

Border Tensions Escalate

Earlier this week, Thailand announced it was putting on hold the ceasefire deal, alleging Cambodia of planting new explosives along the mutual frontier, including one that reportedly injured a Thai soldier on patrol, who suffered a foot amputation in the explosion.

Since then, a fatality occurred and several others wounded by exchanges of fire along the border between the two nations, raising concerns of a new round of retaliatory clashes.

US Trade Pressure

On Saturday, a representative from Thailand's foreign office informed reporters that a official communication from the U.S. trade office announcing the suspension of trade deal talks was received on the previous evening.

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

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

Trump’s Tariff Threat

Speaking to the press aboard the presidential plane as he flew to Florida on Friday, Trump suggested that he had used the “threat of tariffs” in discussions with the ASEAN nation heads.

He stated, “I stopped a war just today through the use of tariffs, the threat of tariffs,” continuing, “they are performing well. I believe they will be okay.”

Ceasefire Agreement Background

Trump oversaw the signing of a peace deal, conducted in Malaysian territory this last autumn, and has promoted it as one of multiple agreements around the world he claims should earn him the Nobel Peace prize.

The most severe clashes in a ten years 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 dates back to conflicts regarding maps from the colonial period created by French cartographers. Historic shrines along the border are claimed by both sides.

Reuters contributed to this report.