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The United States has applied pressure on the Thai administration to recommit to a truce deal with Cambodia, warning that trade talks could be paused as attempts are made to prevent a Trump-mediated ceasefire arrangement from falling apart.

Rising Border Hostilities

In recent days, Thai officials announced it was suspending the truce agreement, alleging Cambodian forces of planting new explosives along the mutual frontier, including one that reportedly wounded a Thai military personnel on duty, who suffered a foot amputation in the explosion.

Since then, one person has been killed and several others wounded by exchanges of fire along the border between the two nations, raising concerns of a fresh wave of retaliatory clashes.

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson informed reporters that a letter from the U.S. trade office declaring the suspension of trade deal talks was obtained on Friday night.

He quoted the document as saying that discussions on trade – which are focusing on a 19 percent American duty – could resume once the Thai government renewed its pledge to carrying out the mutual truce agreement.

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

Trump’s Tariff Threat

Addressing reporters aboard the presidential plane as he flew to Florida on the end of the week, Trump 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’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 world he says should win him the Nobel Peace prize.

The worst fighting in a ten years between military forces of both nations broke out in July, with gunfire, artillery and airstrikes leaving dozens of people killed and 300,000 displaced.

Historic Frontier Conflict

The two neighboring countries have a historic territorial disagreement that originates from conflicts regarding maps from the colonial period drawn up by the French. Historic shrines along the border are claimed by both sides.

Reuters contributed to this report.