Trump Urges the Thai government to Reaffirm Commitment to Cambodian Truce with Trade Penalties

Washington has exerted influence on Thailand to reaffirm its dedication to a truce deal with Cambodia, indicating that trade negotiations could be halted as efforts are made to prevent a Trump-mediated peace agreement from falling apart.

Border Tensions Escalate

Earlier this week, Thailand announced it was suspending the truce agreement, alleging Cambodian forces of planting new explosives along the mutual frontier, among them an incident that reportedly wounded a Thai soldier on duty, who suffered a foot amputation in the blast.

Since then, one person has been killed and several others wounded by gunfire along the border between the two nations, sparking fears of a fresh wave of tit-for-tat fighting.

US Trade Pressure

On Saturday, a representative from Thailand's foreign office informed reporters that a official communication from the Office of the US Trade Representative announcing the suspension of trade deal talks was obtained on the previous evening.

He quoted the document as saying that trade negotiations – which are focusing on a 19 percent American duty – could restart once the Thai government reaffirmed its commitment to carrying out the mutual truce agreement.

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

Trump’s Tariff Threat

Speaking to the press aboard the presidential plane as he flew to Florida 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,” continuing, “they are performing well. I believe they will be okay.”

Truce Deal Origins

The President witnessed the finalization of a peace deal, conducted in Malaysian territory this October, and has promoted it as one of multiple agreements around the world he says should earn him the Nobel Peace prize.

The most severe clashes 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 300,000 displaced.

Longstanding Border Dispute

The two neighboring countries have a longstanding border dispute that dates back to disagreements over colonial-era maps created by French cartographers. Historic shrines along the border are disputed by each nation.

Reuters contributed to this report.

Luis Jordan
Luis Jordan

A financial analyst with over a decade of experience in precious metals markets, specializing in gold and silver investment strategies.