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Washington has exerted influence on Thailand to reaffirm its dedication to a ceasefire agreement with the Cambodian side, warning that trade talks could be suspended as attempts are made to prevent a Donald Trump-brokered peace agreement from falling apart.

Rising Border Hostilities

Earlier this week, Thailand declared 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 soldier on patrol, who lost a foot in the explosion.

Following this, a fatality occurred and several others wounded by exchanges of fire along the Thai-Cambodia frontier, sparking fears of a fresh wave of retaliatory clashes.

American Economic Leverage

On Saturday, a Thai foreign ministry spokesperson informed reporters that a official communication from the U.S. trade office announcing the pause in trade negotiations was received on the previous evening.

The spokesperson referenced the letter as stating that trade negotiations – which are addressing a US tariff of 19% – could resume once the Thai government reaffirmed its commitment to implementing the joint ceasefire declaration.

“Trade talks are ongoing and distinct from frontier matters,” 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 the end of the week, the US leader suggested that he had used the “threat of tariffs” in discussions with the south-east Asian leaders.

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

Truce Deal Origins

The President witnessed the finalization of a ceasefire agreement, conducted in Malaysian territory 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 Thai and Cambodian troops erupted in mid-summer, with exchanges of fire, shelling and aerial attacks leaving dozens of people killed and 300,000 displaced.

Longstanding Border Dispute

The two neighboring countries have a historic territorial disagreement that dates back to disagreements over colonial-era maps drawn up by the French. Historic shrines along the frontier are disputed by each nation.

Reuters contributed to this report.