Thailand and Cambodia Ceasefire Calms Border, But Jitters Remain

BANGKOK/PHNOM PENH, July 29 – Thailand and Cambodia have agreed to a ceasefire following deadly border clashes, easing immediate tensions but raising new questions about trade stability in the region.

The skirmishes, which erupted along a disputed zone in the Dangrek Mountains, displaced thousands and triggered international concern. U.S. presidential frontrunner Donald Trump threatened punitive tariffs of up to 36% on both nations’ exports unless hostilities ceased, a move analysts say added economic urgency to peace talks.

While Malaysia and China facilitated shuttle diplomacy, it was Washington’s ultimatum that reportedly accelerated the agreement. “Both economies are deeply export-reliant, and the threat of U.S. sanctions rattled key sectors—particularly garments, electronics, and rice,” said Dr. Nara Phat, a Southeast Asia political analyst.

Traders across the Thai-Cambodian corridor have since resumed limited operations, though fears persist. “The ceasefire is welcome, but confidence has been shaken,” said Anong Khem, a logistics operator in Aranyaprathet. “Investors don’t like this kind of uncertainty.”

Economists warn that any revival in conflict could disrupt key supply chains and diminish regional integration prospects under the ASEAN framework.

Meanwhile, Cambodian rice exporters face short-term logistics delays due to infrastructure damage, while Thai SMEs expressed concern over possible long-term tariffs from the U.S., should ceasefire terms break down.

“Both sides now face not just a peace-building challenge, but a reputational one,” added Dr. Phat. “Global buyers are watching.”

Sources:
Washington Post (2025) Thailand and Cambodia agree to ceasefire after deadly border clashes. Link
Reuters (2025) Thailand-Cambodia border calm as military-level talks postponed. Link
Financial Times (2025) Thailand and Cambodia set for ceasefire talks after Donald Trump trade threat. Link