BANGKOK — Despite ongoing skirmishes along their shared border, Thailand and Cambodia are set to hold high-stakes peace talks Monday afternoon in Malaysia, as international pressure mounts to end the deadliest clashes between the neighbors in over a decade. The meeting comes after U.S. President Donald Trump threatened trade sanctions unless both sides agree to a ceasefire.

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Leaders to Meet in Kuala Lumpur

Acting Thai Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet will meet at 3 p.m. local time (2 p.m. Bangkok time) in the office of Malaysian Prime Minister Anwar Ibrahim, who is mediating the talks in his capacity as ASEAN chair. The discussions mark the first direct dialogue since fighting erupted on July 24, killing at least 35 people and displacing more than 150,000 civilians.

Trump’s Tariff Threat Spurs Diplomacy

The talks follow urgent interventions by Trump, who warned both nations that the U.S. would withhold trade deals unless hostilities cease. “We’re not going to make a trade deal unless you settle the war,” Trump said Sunday, claiming his pressure had already influenced the leaders. U.S. Secretary of State Marco Rubio confirmed American mediators are on the ground in Malaysia, while China—Cambodia’s key ally—is also expected to participate.

Despite the diplomatic push, clashes persisted into Monday morning, with Thailand accusing Cambodian forces of heavy shelling near contested border zones. Cambodia, meanwhile, maintains it seeks an unconditional ceasefire, while Thailand insists on troop withdrawals and a halt to long-range attacks before de-escalation.

The historic truce talks between Thailand and Cambodia, aimed at securing an immediate ceasefire and halting hostilities along the disputed border, began in Putrajaya on Monday.

The meeting, brokered by Malaysia and Prime Minister Anwar Ibrahim in his capacity as the current… pic.twitter.com/OHQOgJPdPT

— Thai PBS World (@ThaiPBSWorld) July 28, 2025

Economic Stakes Heighten Tensions

Thailand, facing a potential 36% U.S. tariff on exports, is keen to avoid further economic fallout. The country has been negotiating expanded U.S. market access to offset its $46 billion trade surplus with Washington. Analysts suggest Trump’s hardline approach mirrors his past mediation in South Asia, where trade threats helped defuse India-Pakistan tensions earlier this year.

Historical Disputes Fuel Conflict

The current clashes stem from unresolved border demarcations dating back to French colonial treaties. While relations stabilized after 2011’s deadly Preah Vihear temple conflict, recent troop buildups and competing territorial claims have reignited hostilities.

As Monday’s talks begin, regional observers remain cautious. “ASEAN should have mediated sooner,” said Thammasat University’s Fuadi Pitsuwan. “Now, Trump can claim victory while securing trade leverage.”

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With artillery fire still echoing along the frontier, the world watches to see if diplomacy can silence the guns.

-Thailand News (TN)