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

Rising Border Hostilities

Earlier this week, Thailand announced it was putting on hold the truce agreement, accusing Cambodian forces of planting new explosives along the mutual frontier, including one that allegedly wounded a Thai soldier on patrol, who suffered a foot amputation in the explosion.

Following this, one person has been killed and multiple individuals injured by gunfire along the border between the two nations, sparking fears of a new round of tit-for-tat fighting.

American Economic Leverage

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

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

“Trade talks are ongoing and distinct from frontier matters,” stated another government spokesperson.

President’s Economic Warning

Addressing reporters on Air Force One as he flew to Florida on the end of the week, the US leader suggested that he had employed tariff warnings in calls with the ASEAN nation heads.

The US president said, “Today, I prevented a conflict using tariffs, the menace of duties,” continuing, “they are performing well. I believe they will be okay.”

Ceasefire Agreement Background

The President witnessed the finalization of a ceasefire agreement, held in Malaysia this October, and has promoted it as one of multiple agreements around the world he says should earn him the prestigious peace award.

The most severe clashes in a ten years between military forces of both nations erupted in July, with gunfire, artillery and airstrikes causing numerous fatalities and 300,000 displaced.

Historic Frontier Conflict

Thailand and Cambodia have a longstanding border dispute that dates back to conflicts regarding colonial-era maps drawn up by the French. Historic shrines along the frontier are disputed by each nation.

Reuters contributed to this report.