Former U.S. President Donald Trump has issued a stark warning to Cambodia and Thailand, threatening to impose higher tariffs on both nations unless they immediately cease their ongoing border conflict. The fighting, now in its third day, has resulted in at least 33 casualties and displaced over 168,000 people, creating a humanitarian crisis in the region.
During his visit to Scotland, Trump took decisive diplomatic action, placing separate calls to Cambodian Prime Minister Hun Manet and Thai leadership. In a subsequent post on Truth Social, he made his position clear: "Both parties are looking for an immediate ceasefire and peace. However, returning to trade negotiations with the U.S. will remain inappropriate until the violence stops completely." This hardline approach mirrors Trump's successful 2025 strategy that helped de-escalate tensions between India and Pakistan.
The economic implications of this threat are significant. Thailand, America's 12th largest trading partner with $60 billion in annual bilateral trade, could see tariffs targeting its lucrative electronics exports, which account for 19% of U.S. imports from the country. Cambodia's $3 billion textile industry, a critical sector for its economy, also faces potential disruption. Market analysts warn that prolonged conflict could destabilize the entire ASEAN region, potentially affecting the $1.2 trillion trade bloc's supply chains.
International response has been swift, with the UN Security Council reportedly preparing an emergency session. Meanwhile, ASEAN mediators are working behind the scenes, with Vietnam offering to host neutral negotiations. Trump's administration has set an informal 48-hour deadline for de-escalation before initiating tariff procedures, which could begin as early as Monday. As the situation develops, global markets and diplomatic circles remain on high alert, watching to see whether economic pressure can achieve what traditional diplomacy has so far failed to accomplish.
