In this photo released by Agence Kampuchea Press (AKP), Cambodian villagers sit on tractors as they flee from the home in Preah Vihear province, Cambodia, Monday, Dec. 8, 2025. (AKP via AP)
 

Thai–Cambodian border clashes have led to a dramatic collapse in trade flows, cutting a staggering 99.5% of transactions, the Federation of Thai Industries (FTI) reports. The violence has virtually shut down commerce across the border, resulting in losses of approximately 500 million baht every day.

 

This turmoil comes as the US halts tariff discussions, potentially compounding economic challenges.

The conflict reignited on December 7, 2025, from the Phu Pa Lek–Phlan Hin Paet Kon area and spread to other parts of Si Sa Ket and Ubon Ratchathani. In response, the Thai government evacuated tens of thousands of residents from four provinces. The conflict disrupts an October 2025 ceasefire and exacerbates trade negotiations with the US, which has asked Thailand to pause the talks, allegedly tying them to border conflict management.

 

Thailand insists on separating tariff negotiations from the security issues. With economic risks mounting, the Thai government vows to continue dialogue, hoping to insulate trade policy from disputes with Cambodia. Kriengkrai Thiennukul, the FTI chairman, emphasised that the conflict threatens both safety and the economy, notably accusing Cambodia of violating the Ottawa Convention by planting landmines in Thai territory.

 

Kriengkrai claims the Thai Foreign Ministry presented evidence at an international meeting linking Cambodia to bomb-planting demonstrations. Cambodian representatives reportedly reacted with shock and attempted to interrupt the presentation. Following these revelations, Cambodia allegedly launched attacks on Thai military bases, prompting a response from the Royal Thai Air Force using F-16 fighter jets on strategic targets.

 

The consequences of these clashes impact local economies and threaten wider regional stability. The ongoing tension has placed added strain on diplomatic relations and potential economic recovery efforts. As the situation continues to unfold, all eyes are focused on future developments between the two nations, reported The Nation

 

Key Takeaways:

 

• Border trade between Thailand and Cambodia has plummeted by 99.5%.
• US has paused tariff talks with Thailand over border conflict concerns.
• Thai–Cambodian tensions continue to escalate with military involvement.

 

  Adapted by ASEAN Now from The Nation 2025-12-09

 

 

 

"The conflict has paralyzed border trade, particularly at the Klong Luek–Poipet crossing, halting commerce valued at approximately $4.7 billion (174.5 billion Baht) annually."

 

 

https://www.nationthailand.com/business/economy/40059517