Thai and Cambodian leaders met in Malaysia on Monday and agreed to a ceasefire to halt their deadliest conflict in more than a decade. That agreement came after Trump warned the Thai and Cambodian leaders at the weekend that trade negotiations with the U.S. would not progress if fighting continued.

The ceasefire comes days before the U.S. is expected to announce new trade tariff decisions. Cambodia and Thailand have both been two of the hardest-hit countries as a result of Trump’s trade war, with 36% tariff on goods from both countries taking effect this coming Friday.

A Cambodian government official has sung praise to U.S. President Donald Trump for "bringing about peace" after Thailand and Cambodia agreed to a cease-fire starting at midnight local time on Monday.

A ceasefire between Thailand and Cambodia held on Monday and military commanders from both sides met to discuss measures to maintain the truce, as some residents along the disputed frontier trickled back home after five days of intense fighting.

After nearly 30 years in service, the Swedish-made JAS 39 Gripen fighter saw its first combat use by Thailand, in a border clash with Cambodia, signaling its growing regional strategic value.

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Thailand's trade talks with the United States are expected to be concluded before August 1, and U.S. tariffs on the country are not expected to be as high as 36%, its finance minister said on Tuesday.

Indonesian industry experts estimate a 10-15 per cent rise in visitors to the island due to the hostilities between Bangkok and Phnom Penh.