Trump uses tariff threats to halt Southeast Asian conflict and position as global peacemaker
TOI World Desk | TIMESOFINDIA.COM | Jul 30, 2025, 22:12 IST
( Image credit : IANS )
Highlight of the story: Donald Trump's trade threats seemingly brokered a ceasefire between Thailand and Cambodia, ending a violent border clash. Trump threatened steep US tariffs, prompting both nations to negotiate. Cambodia and Thailand, reliant on the US market, agreed to a truce after Trump's warning. While China maintained a low profile, Trump claimed diplomatic victory, highlighting contrasting approaches to foreign policy.
President Donald Trump’s unconventional use of trade threats appears to have helped end a violent border clash between Thailand and Cambodia — a five-day conflict that left at least 42 dead. Trump’s pressure, including threats of steep US tariffs, is credited with bringing both sides to the negotiating table and ultimately securing a ceasefire, negotiated in Malaysia under ASEAN’s mediation.
Just days before the truce, Trump warned that the US would halt trade talks and impose 36% tariffs on both nations if they continued hostilities. Cambodia and Thailand, heavily reliant on the US market and already running trade surpluses, quickly took notice. By Monday, their leaders — Prime Minister Hun Manet of Cambodia and Acting Prime Minister Phumtham Wechayachai of Thailand — had agreed to a ceasefire and publicly thanked Trump for his intervention. The truce, though fragile, appears to be holding, with only sporadic skirmishes reported since.
China, while present at the negotiations, maintained a low profile and refrained from leveraging any economic pressure — in keeping with its long-standing principle of non-interference. This allowed the US president to dominate headlines and claim diplomatic victory. Trump later declared on social media, “I am proud to be the President of PEACE!”
The contrasting approaches from Washington and Beijing reflect broader ideological divides. Trump’s foreign policy increasingly links trade leverage to geopolitical goals — a "tariffs-for-peace" doctrine he's deployed before, including with India and Pakistan, and even Brazil. In contrast, Chinese President Xi Jinping’s strategy focuses on long-term infrastructure investment and regional diplomacy via institutions like ASEAN, avoiding coercive tactics.
This episode underscores Southeast Asia’s delicate balancing act. While both Cambodia and Thailand are closely tied to China — Cambodia in particular, through Belt and Road projects — they remain economically dependent on the US as well. China has financed massive infrastructure projects in Cambodia, including airports, expressways, and an upcoming $1.2 billion canal. Yet, the US still represents a key export market, giving Trump leverage despite China’s growing influence.
Analysts note that Trump’s tactic of using trade threats as diplomatic tools may bring short-term results, but could backfire in the long run by eroding trust. China’s softer approach, while slower, may resonate more with developing nations wary of external interference.
While the ceasefire is a positive step, tensions over border demarcations — rooted in colonial-era treaties — remain unresolved. The future will likely test whether trade threats can deliver lasting peace or simply mask deeper regional divides.