A senior South Korean government official on Monday ruled out that it would agree to a trade package with the United States by the Asian country's presidential election on June 3, and flagged challenges to reaching a deal even before early July.

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,

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.