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Washington has exerted influence on Thailand to recommit to a truce deal with the Cambodian side, indicating that trade talks could be halted as attempts are made to prevent a Trump-mediated ceasefire arrangement from falling apart.

Border Tensions Escalate

Earlier this week, Thailand announced it was suspending the truce agreement, accusing Cambodian forces of laying fresh landmines along the shared border, among them an incident that reportedly injured a Thai soldier on duty, who suffered a foot amputation in the explosion.

Following this, a fatality occurred and multiple individuals injured by gunfire along the border between the two nations, sparking fears of a fresh wave of retaliatory clashes.

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson told journalists that a letter from the U.S. trade office announcing the suspension of trade deal talks was received on Friday night.

He quoted the letter as saying that discussions on trade – which are focusing on a 19 percent American duty – could resume once the Thai government reaffirmed its commitment to implementing the mutual truce agreement.

“Tariff negotiations will continue and remain separate from border issues,” said a different official representative.

President’s Economic Warning

Addressing reporters aboard the presidential plane as he traveled to the Sunshine State on the end of the week, the US leader implied that he had used the “threat of tariffs” in discussions with the south-east Asian leaders.

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

The President witnessed the finalization of a peace deal, held in Malaysia this October, and has promoted it as one of several deals around the globe he claims should earn him the Nobel Peace prize.

The worst fighting in a ten years between Thai and Cambodian troops broke out in July, with exchanges of fire, shelling and aerial attacks leaving dozens of people killed and 300,000 displaced.

Longstanding Border Dispute

Thailand and Cambodia have a historic territorial disagreement that originates from conflicts regarding colonial-era maps created by French cartographers. Historic shrines along the frontier are claimed by both sides.

International news agency contributed to this report.