As armed clashes in the border region between Thailand and Cambodia intensify, President Donald Trump has leveraged tariffs to lead ceasefire negotiations between the two countries.
On the 26th (local time), President Trump noted that he had spoken with the leaders of both countries to mediate the ceasefire, saying, "Both sides agreed to meet immediately to enable a ceasefire and ultimately peace quickly."
He continued, "Both sides want an immediate ceasefire and peace," adding, "They also want to return to the 'trade (negotiation) table' with the U.S., but we believe that is inappropriate until the fighting ends."
President Trump added, "I hope the two nations get along well in the coming years," stating, "I look forward to signing a trade agreement with both countries when everything is over and peace comes."
The U.S. previously sent letters to countries notifying them that it would impose reciprocal tariffs of 36% on Cambodia and 36% on Thailand starting August 1. Currently, both countries are negotiating with the U.S. to lower the tariff rates.
As the armed conflict between the two countries escalated, President Trump remarked, "Coincidentally, we are currently negotiating trade with both countries, but if they fight, I do not want to finalize agreements with either country." This implies that trade negotiations will be halted if the two countries do not accept the ceasefire mediation.
Since the 24th, Thailand and Cambodia have begun exchanging gunfire near the ancient temple of Prasat Ta Muang Thom, which both countries claim sovereignty over. On the 25th, large-scale artillery fire was exchanged. Thailand, which had previously drawn a line against full-scale war, stated that "the situation has worsened and could escalate into war."