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The United States has applied pressure on Thailand to reaffirm its dedication to a ceasefire agreement with Cambodia, warning that trade talks could be paused as attempts are made to stop a Trump-mediated peace agreement from collapsing.

Border Tensions Escalate

In recent days, Thailand announced it was putting on hold the truce agreement, alleging Cambodian forces of laying fresh landmines along the shared border, including one that allegedly wounded a Thai soldier on patrol, who suffered a foot amputation in the blast.

Following this, a fatality occurred and multiple individuals injured by exchanges of fire along the border between the two nations, sparking fears of a new round of tit-for-tat fighting.

American Economic Leverage

On Saturday, a representative from Thailand's foreign office informed reporters that a letter from the U.S. trade office declaring the suspension of trade deal talks was obtained on the previous evening.

He quoted the document as stating that trade negotiations – which are focusing on a 19 percent American duty – could resume once the Thai government reaffirmed its commitment 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

Addressing reporters on Air Force One as he flew to Florida 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, “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, conducted in Malaysian territory this October, and has touted 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 July, with gunfire, artillery and airstrikes leaving dozens of people killed and 300,000 displaced.

Longstanding Border Dispute

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.

International news agency contributed to this report.