Thai–Cambodian clashes explode as Thai jets strike and troops fall, sparking fears the US–Thai trade deal is doomed, and officials openly doubt any future talks with President Trump amid spiralling border violence and rising national alarm.
Fears are mounting in the business sector that the latest outbreak of hostilities has effectively torpedoed Thailand’s prospects for a competitive trade deal with the United States. The talks were already suspended on November 10 after Prime Minister Anutin Charnvirakul declared the Thai-Cambodian peace declaration void following a landmine explosion that injured a Thai soldier. On Monday, the conflict escalated across multiple fronts in a day that saw Thai airstrikes, one Thai soldier killed, and 18 others injured. Prime Minister Anutin said bluntly on Monday that he did not care about US–Thai trade talks, while sources say Thailand will no longer engage with US President Donald Trump after what it considers Cambodia’s failure to honour previous agreements. Even the Ministry of Commerce’s Suphajee Suthumpun showed uncertainty about the prospects of US–Thai trade talks when questioned by reporters.
Mounting anxiety is spreading through business circles in Bangkok. Many firms fear that the latest Thai–Cambodian clashes have wrecked the government’s trade talks with the United States. The concern has widened across Thailand. The mood has hardened as the border situation worsens.
On Monday, the government made its stance clear. Prime Minister Anutin Charnvirakul dismissed economic concerns.
He said he did not care about the trade issue at this stage. He said Thailand must protect its sovereignty first. His comments came as violence continued for a second day.
Thailand signals trade uncertainty as commerce minister backs government in sovereignty position
Afterwards, Commerce Minister Suphajee Suthumpun addressed the issue. She said Thailand still wanted a negotiated US–Thai trade deal.
However, she accepted that the agreement might not come this year. She added that Thailand was ready to negotiate. But she said she also accepted the government’s position on Sunday’s alleged violation of Thai sovereignty by Cambodia. Her remarks reflected the cabinet’s unified stance.
Meanwhile, hostilities expanded along the border. The clashes continued throughout Monday. They also spread along an extended line with several flashpoints. By evening, one Thai soldier was confirmed dead. Eighteen others were injured. Many suffered shrapnel wounds after intense exchanges of fire.
The renewed fighting began on December 7. Thai troops came under fire in the Phu Pha Lek–Phla Hin Paet Kon area of Sisaket. One soldier was shot in the leg. Another round struck his chest. His bulletproof vest saved his life. He still suffered a severe bruise.
Intensifying overnight assaults as Cambodian forces move rocket launchers into range against Thailand
Later that night, at 8 p.m., Cambodian forces opened fire again. They targeted Thai positions in the same area. Thai units reported heavy Cambodian movements through the night. Cambodian troops moved RM-70 and BM-21 rocket launchers into range.
Then, at 5 a.m. the next morning, Cambodian soldiers fired at Chong An Ma in Ubon Ratchathani. The fiercest clash erupted at Chong Bok. Cambodian forces used heavy weapons against a Thai base. One soldier died. Four others were injured.
As a result, the Royal Thai Air Force deployed F-16 aircraft. Thai pilots struck three Cambodian positions.
Foreign media quickly seized on the escalation. CNN led its coverage with images of the Thai air strike. The renewed fighting became the top story in several reports.
While the situation deteriorated, the Ministry of Commerce again addressed concerns. It said negotiations with Washington were still “on track”. However, it acknowledged the suspension issued on November 10 by the U.S. Trade Representative. That suspension remains in force. The ministry confirmed that Thailand was committed to the deal. It did not, however, address the latest U.S. position in detail.
Sources see clashes as end of outside involvement as Thailand asserts full control over conflict
Minister Suphajee insisted Thailand had done nothing wrong. The former businesswoman turned cabinet minister said negotiations would continue. In turn, she stated that, consequently, there were no concerns on the Thai side.
She added that her earlier goal of concluding the deal by the end of 2025 was now uncertain. Notably, Ms. Suphajee said Thailand acted according to proper procedures. She said Washington should understand that Thailand had not initiated aggression.
As the conflict intensified, analysts in Bangkok drew new conclusions. Several observers now interpret the clashes as the end of outside intervention. They say neither the United States nor Malaysia will attempt further involvement.
One source said the Thai military is now in full control. The source added that the armed forces had been given a free hand. He also said there would be no further negotiations with President Donald Trump. According to him, such talks would be viewed as a breach of Thailand’s sovereignty.
Government faces overlapping crises as army vows to strip Cambodia of capability to mount future attacks
The escalation came after major flooding in nine southern provinces had just begun to recede. The government had no pause between crises. Before the flooding, Prime Minister Anutin had ordered strict monitoring of the border.
He said Cambodia had shown no real interest in agreements. He said violations had continued. One example was the soldier who lost his leg to a landmine in a controlled area.
The events of December 7 shifted the conflict sharply. They also framed the government’s reaction. As fighting grew more severe, the military leadership became more explicit.
General Chaiyapruek Duangpraphat, Chief of Staff of the Royal Thai Army, said the army aimed to permanently deprive Cambodia of its military capability. He said this was necessary to protect the Thai population.
Prime Minister Anutin later appeared with the top commanders. He reaffirmed Thailand’s commitment to defending its territory. The PM also said Thailand had the right to self-defence. Anutin said Cambodia launched attacks on Sunday that continued into Monday. He said Thailand would respond to “actual situations” and take “all necessary military operations”.
Government pursues a military solution while Commerce Ministry insists on limited economic impact
The PM added that the armed forces could operate carefully and follow humanitarian standards. He said the safety of the people was paramount. However, he emphasised the government was determined to uphold sovereignty and law.
He repeated that Thailand had never initiated violence. However, he said Thailand would not tolerate any infringement. He said all actions would be rational, careful, and consistent with principles of peace and security.
The Ministry of Commerce addressed economic impacts in parallel. It said the border conflict would not significantly affect trade because the checkpoints had been closed since June. Trade volumes have already declined.
The ministry said it would help distribute goods from seven border provinces over the New Year period. It also said entrepreneurs would receive access to trade events such as the Sky Expo.
Officials added that investors in Cambodia already had support. The Ministry of Finance had approved liquidity loans and tax-free transfers of machinery. These measures are intended to ease pressure on affected businesses.
Thailand stresses proper conduct in US talks as suspended negotiations hinge on stabilisation
Minister Suphajee again addressed US negotiations. Significantly, she insisted she was not worried about the impact. She said Thailand did not initiate the clashes. Furthermore, she also said Thailand would continue talks through every available channel.
Ms. Suphajee noted that the U.S. suspension would continue until the conflict stabilised. The commerce minister said Thailand had already sent a letter confirming its intention to keep negotiating. Certainly, she conceded the main issue now was uncertainty.
Meanwhile, she again emphasised that Thailand would continue its duties. She nevertheless repeated that there were no concerns. Again, she conceded that the timeline for concluding talks with the United States was now unclear. Nevertheless, she insisted Thailand had acted properly and followed procedures. Therefore, she said the United States must recognise that Thailand had not shown aggression.
High political stakes as border crisis unfolds and Thailand signals unwavering defence on volatile frontline
Political stakes have also risen. Prime Minister Anutin faces a deadline under the memorandum with the People’s Party. Parliament is set to dissolve on or before January 31, 2025. The border conflict may now influence whether he remains trusted for a second term. The government says it will defend the nation until its mandate ends.
Meanwhile, the border remains volatile. Troop deployments continue. Thai units maintain ground positions. Cambodian activity is still monitored. Fighting may resume at any moment. Officials say operations will follow developments on the ground.
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For now, the conflict is shaping Thailand’s military posture, its trade expectations, and its interactions with foreign partners. The government has signalled it will act without hesitation. The military has confirmed it has full freedom to operate. Businesses remain on alert and very nervous.
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Further reading:
Trump brokered peace pact between Thailand and Cambodia suspended after landmine attack this week
Prime Minister Anutin signs accord with Cambodia witnessed by US President Trump in Kuala Lumpur
Trump to oversee ground breaking new deal between Thailand and Cambodia on Saturday to map border
High powered, secretive meeting chaired by PM agrees robust action against Cambodian networks
Thailand and Cambodia face danger from ‘Dragon Head’ the Chinese mafia leader behind the scams
