Thailand and the United States are moving forward with negotiations on a major reciprocal trade agreement, even as tensions simmer along the Thai-Cambodian border. The announcement, made on November 15, 2025, by a Thai government spokesperson, signals a determination by both nations to keep economic discussions on track, despite a recent flare-up in regional hostilities and a temporary suspension of talks by Washington.
Earlier the same day, the U.S. had reportedly put trade negotiations on hold, demanding that Thailand reaffirm its commitment to a U.S.-brokered ceasefire with Cambodia before any further progress could be made. This development came after a week in which the fragile peace between Thailand and Cambodia was threatened by allegations of fresh landmines being laid along their shared border—an accusation that Cambodia has firmly denied. The situation escalated to the point where Thailand suspended its participation in the ceasefire and called for an apology from its neighbor, after Thai soldiers were injured in the disputed area.
However, the diplomatic landscape shifted following a late-night call on November 14 between Thai Prime Minister Anutin Charnvirakul and U.S. President Donald Trump. According to Thai government spokesperson Siripong Angkasakulkiat, "Tariff negotiations will continue and remain separate from border issues." Siripong also reported that President Trump had assured Prime Minister Anutin that the United States did not wish to interfere in the border dispute, emphasizing that it should be handled through existing bilateral mechanisms.
This reassurance came despite the fact that, on the evening of November 14, Thailand received a formal letter from the Office of the U.S. Trade Representative (USTR) indicating that talks to finalize the details of the trade deal were suspended until Thailand reaffirmed its commitment to the ceasefire agreement with Cambodia. Foreign Ministry spokesperson Nikorndej Balankura told reporters that the USTR's letter made clear that negotiations could resume once this commitment was made.
The backdrop to these diplomatic maneuvers is a newly announced framework for reciprocal trade between the U.S. and Thailand, unveiled just last month. Under the proposed deal, the United States would maintain a 19% tariff on Thai products, but both sides would identify specific goods where tariffs could be adjusted—or even cut to zero. The goal, officials say, is to boost trade flows while protecting sensitive sectors in each country. But before the agreement can take effect, the two sides must hammer out the fine print and prepare the deal for signature.
The ongoing border tensions have cast a shadow over these economic talks. The dispute between Thailand and Cambodia is rooted in long-standing disagreements over the exact demarcation of their border, a source of friction that erupted into five days of armed conflict in late July 2025. That brief but deadly clash resulted in dozens of casualties among soldiers and civilians, highlighting the volatility of the region. According to Reuters, Thailand suspended its participation in the ceasefire earlier this week, citing the landmine incident and demanding an apology from Cambodia, which has denied any wrongdoing.
Against this tense backdrop, President Trump made headlines on November 15 by declaring that he had successfully intervened to ease hostilities between the two Southeast Asian nations. Speaking to reporters aboard Air Force One as he traveled to his Mar-a-Lago estate, Trump stated, "I stopped a war just today." He attributed his success to the leverage provided by U.S. trade policy, particularly the use of steep tariffs, which he argued gives the United States significant diplomatic clout. "They’re doing great. They were not doing great," Trump said, referring to the prime ministers of both countries, with whom he had spoken by phone the previous night. He concluded, "I think they’re going to be fine."
Trump’s remarks underscored his administration’s belief in the power of economic tools to shape international relations. The president has consistently argued that tariffs—often a source of friction with U.S. trading partners—can also serve as a means of encouraging diplomatic solutions to conflicts. In this instance, Trump’s willingness to engage directly with the leaders of both Thailand and Cambodia appears to have helped stabilize the situation, at least for the time being.
Yet the situation remains fluid. While Trump’s call with Prime Minister Anutin seems to have reassured both sides that trade negotiations can proceed independently of the border dispute, the U.S. Trade Representative’s letter suggests that Washington still expects a clear reaffirmation of the ceasefire before any deal is finalized. This delicate balancing act reflects the complexities of modern diplomacy, where economic and security interests often intersect in unpredictable ways.
Prime Minister Anutin, for his part, used the opportunity to press for greater market access for Thai goods. In a Facebook post following his call with Trump, Anutin said he had requested a reduction in the 19% tariff on Thai products. According to Anutin, Trump described the current rate as "already a low rate," but indicated he might consider a further cut if Thailand could demonstrate swift progress in removing landmines from its border with Cambodia. This conditional offer highlights the interconnectedness of the two issues—trade and security—even as both sides insist on keeping them formally separate.
For Thailand, the stakes are high. The country is eager to secure more favorable terms for its exports, especially at a time when global trade is under pressure from shifting alliances and rising protectionism. For the United States, the negotiations offer a chance to deepen ties with a key partner in Southeast Asia, while also projecting American influence in a region marked by competing interests from China and other powers.
Meanwhile, the people living along the Thai-Cambodian border continue to bear the brunt of the dispute. The recent fighting in July and the ongoing presence of landmines have left communities on edge, with civilians as well as soldiers at risk. Both governments face mounting pressure to resolve their differences peacefully, not only for the sake of regional stability but also for the well-being of their citizens.
As the two countries work to finalize their trade agreement, all eyes will be on how they manage the delicate balance between economic cooperation and security concerns. The outcome could set an important precedent for how trade and diplomacy intersect in an increasingly complex world. For now, cautious optimism prevails, but the road ahead is anything but certain.
