Trump Threatens Cambodia and Thailand: Resolve Conflict or Brace for Heavier U.S. Tariffs

Geopolitical tensions flare as former U.S. President Trump issues a stark ultimatum to Southeast Asian nations.

Tariffs or Truce?

In a move that echoes his hardline trade policies, Trump has reportedly warned Cambodia and Thailand to settle their disputes—or face escalated economic penalties. No specifics on tariff percentages, but the message is clear: play nice or pay up.

Finance Irony Alert

Because nothing solves diplomatic spats like threatening to make goods more expensive—just ask the ghost of Smoot-Hawley. Meanwhile, crypto traders shrug; decentralized assets don’t care about border squabbles.

Trump makes calls while in Scotland

While visiting Scotland for what was supposed to be a mix of diplomacy and golf, Trump made two separate calls to the leaders of Cambodia and Thailand. His first conversation was with Hun Manet, the Prime Minister of Cambodia, where he pushed for “an END to the War.” He also said if the two governments don’t reach a deal soon, he will “not want to make any Deal, with either Country.”

Trump didn’t exactly put down the golf club. He had a tee time lined up at his Turnberry resort with one of his sons and U.S. Ambassador to the UK Warren Stephens. But that didn’t stop him from weighing in. “The call with Cambodia has ended, but expect to call back regarding War stoppage and Ceasefire based on what Thailand has to say,” Trump posted. “I am trying to simplify a complex situation!”

A few minutes later, Trump called Phumtham Wechayachai, the acting Prime Minister of Thailand. He said Phumtham “wants to have an immediate Ceasefire, and PEACE.”

Trump didn’t stop there. He compared this situation to the earlier conflict between India and Pakistan. According to him, the U.S. played a role in ending that flare-up by applying trade pressure. “If you stop it, we’ll do a trade,” Trump said back then. “If you don’t stop it, we’re not going to do any trade.” But India’s government publicly denied that version of events. A spokesperson from their foreign ministry said, “The issue of trade didn’t come up in any of these discussions.”

Cambodia and Thailand are already deep in Trump’s trade war crosshairs. Just last week, the former president slapped a new 36% tariff on most exports coming from both countries. That MOVE goes into effect on August 1, and the economic pain hasn’t even started. Trump’s latest comments suggest things could get worse if they don’t come to a ceasefire quickly.

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