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The United States has applied pressure on Thailand to reaffirm its dedication to a truce deal with the Cambodian side, indicating that trade negotiations could be suspended as efforts are made to prevent a Donald Trump-brokered ceasefire arrangement from collapsing.

Rising Border Hostilities

In recent days, Thai officials 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 duty, who suffered a foot amputation in the blast.

Since then, one person has been killed and multiple individuals injured by exchanges of fire along the border between the two nations, sparking fears of a fresh wave of retaliatory clashes.

American Economic Leverage

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

The spokesperson referenced the letter 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 joint ceasefire declaration.

“Tariff negotiations will continue and remain separate from border issues,” stated another government spokesperson.

President’s Economic Warning

Speaking to the press on Air Force One 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, “I stopped a war just today through the use of tariffs, the threat of tariffs,” adding, “they are performing well. I believe they will be okay.”

Ceasefire Agreement Background

Trump oversaw the signing of a ceasefire agreement, conducted in Malaysian territory this October, and has touted it as one of multiple agreements around the world he says should earn 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.

Longstanding Border Dispute

The two neighboring countries have a longstanding border dispute that originates from disagreements over colonial-era maps created by French cartographers. Historic shrines along the border are claimed by both sides.

Reuters contributed to this report.