A sudden escalation in border conflict between Thailand and Cambodia in July 2025 resulted in dozens of deaths and mass displacement. U.S. President Donald Trump intervened by threatening steep tariffs and leveraging ongoing trade negotiations, pressuring both countries to agree to an immediate ceasefire. Trump has publicly claimed credit for brokering the peace, touting his role as a 'dealmaker-in-chief' and promising to restart trade talks with both nations. The ceasefire is being hailed as a catalyst for renewed economic optimism and foreign investment in Southeast Asia, though some regional leaders have expressed concern about linking peace to economic coercion. The episode underscores the growing use of economic leverage in U.S. foreign policy and its impact on regional stability.
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