Washington DC: In a significant diplomatic shift, U.S. President Donald Trump announced on Sunday that the United States will resume trade negotiations with Thailand and Cambodia. The announcement follows a ceasefire agreement reached between the two Southeast Asian nations after a deadly border conflict that had threatened regional stability.
The conflict, which lasted for several days, erupted along the disputed border area, resulting in the deaths of over 30 people and the displacement of thousands. Both Thailand and Cambodia accused each other of violating territorial sovereignty. However, with mediation led by Malaysian Prime Minister Anwar Ibrahim, the two countries agreed to a ceasefire and initiated peace talks in Kuala Lumpur.
President Trump, who had previously suspended trade discussions in response to the violence, welcomed the diplomatic breakthrough. In a statement posted on Truth Social, he said that trade negotiations would resume immediately, conditional upon continued peace and stability in the region. He emphasized that the United States would not reward aggression but would support those willing to resolve disputes through dialogue.
Trade tensions had escalated earlier this year when the U.S. imposed steep tariffs on imports from Thailand and Cambodia 36% and 49% respectively citing imbalances and concerns over labor rights. The two countries were facing significant economic consequences, with business leaders warning that the tariffs could severely impact export-driven growth. Thailand, in particular, feared its GDP growth could fall below 2.5% if punitive measures continued.
The decision to reconnect on trade talks is being viewed as part of the U.S.’s broader strategy to reassert influence in Southeast Asia and counter China's expanding footprint. Trump’s move also signals that the United States is willing to leverage economic tools to promote regional peace. Analysts note that the linking of trade policy to geopolitical conduct could mark a new chapter in American foreign relations in Asia.
Both Thai and Cambodian officials cautiously welcomed the U.S. gesture, noting that trade ties with Washington are crucial for their economies. Cambodian officials expressed hope that renewed talks would lead to the lifting of tariffs and increased cooperation in infrastructure and digital trade. Meanwhile, Thai representatives reaffirmed their commitment to maintaining the ceasefire and participating in further negotiations.
The White House also confirmed that U.S. diplomats would join multilateral discussions scheduled in Malaysia next week to further consolidate the ceasefire agreement and lay the groundwork for a lasting settlement. Observers note that continued U.S. engagement could prove pivotal in transforming a moment of tension into an opportunity for economic partnership and regional diplomacy.
This development comes amid growing scrutiny over U.S. foreign policy in Asia and the effectiveness of its economic diplomacy. Whether the revived trade negotiations result in a full-fledged agreement remains to be seen, but the willingness of all parties to return to the table is being seen as a positive signal.