The United States said on Tuesday that it will continue to encourage South Korea and Japan to resolve their disputes through "sincere discussions.”

A U.S. State Department spokesperson told Seoul-based Yonhap News that as an ally and friend to both Japan and South Korea, the U.S. believes it is critical to ensure strong and close relationships between and among the three countries.

The spokesperson said that such relationships are extremely important in the face of shared regional challenges, including those posed by North Korea.

The spokesperson stressed that Seoul and Tokyo must resolve sensitive bilateral matters, adding "the U.S., as a close friend and an ally to both, will do what it can to support” such efforts.

Seoul and Tokyo are mired in an escalating trade row that appears to be rooted in last year’s Supreme Court rulings ordering Japanese companies to compensate victims of wartime forced labor.

Tokyo introduced export controls on three key high-tech material exports to South Korea last month, and removed Seoul from a preferred trading partner list Wednesday.

South Korea has responded with trade restrictions of its own and decided last week to pull out of a military intel-sharing pact with Japan.