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The United States has applied pressure on the Thai administration to reaffirm its dedication to a truce deal with Cambodia, warning that trade talks could be halted as attempts are made to prevent a Donald Trump-brokered peace agreement from collapsing.

Border Tensions Escalate

In recent days, Thailand announced it was putting on hold the ceasefire deal, alleging Cambodian forces of laying fresh landmines along the mutual frontier, including one that reportedly wounded a Thai military personnel on patrol, who lost a foot in the explosion.

Following this, one person has been killed and several others wounded by gunfire along the Thai-Cambodia frontier, raising concerns of a new round of retaliatory clashes.

American Economic Leverage

On Saturday, a representative from Thailand's foreign office told journalists that a letter from the Office of the US Trade Representative declaring the suspension of trade deal talks was received on the previous evening.

He quoted the document as saying that trade negotiations – which are focusing on a US tariff of 19% – could restart once the Thai government 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

Speaking to the press aboard the presidential plane as he traveled to the Sunshine State on Friday, the US leader suggested that he had employed tariff warnings in calls with the south-east Asian leaders.

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, conducted in Malaysian territory this last autumn, and has promoted it as one of several deals around the globe he says should earn him the prestigious peace award.

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 hundreds of thousands forced to flee.

Longstanding Border Dispute

Thailand and Cambodia have a longstanding border dispute that originates from disagreements over maps from the colonial period created by French cartographers. Ancient temples along the border are claimed by both sides.

Reuters provided input for this coverage.