South Korea said it requested exemptions from reciprocal and item-specific U.S. tariffs, and offered cooperation on shipbuilding and energy and in addressing trade imbalances.

South Korea’s economy contracted in the first quarter after large-scale wildfires and political turmoil over its president’s impeachment suppressed consumer sentiment and business activities.

South Korea and the U.S. are working on a deal to remove new U.S. tariffs ahead of a July deadline. The two nations seek exemptions and have agreed to further discussions focused on tariffs, economic security,