The agreement that Japan secured has added pressure on South Korea to defuse the threat of high tariffs on its exports to the United States.

South Korea is trying to secure a mutual trade package with President Donald Trump before August 1, when U.S. tariffs on Korean exports are set to snap back to 25%. The presidential office in Seoul said on Saturday that officials are preparing a deal they hope both countries can agree on ahead of minister-level meetings

South Korea and the United States have been discussing a shipbuilding tie-up that could include investments to modernise U.S. shipyards and more help to repair the U.S. naval fleet as Seoul seeks better tariff terms,