South Korean President Moon Jae-in will not visit Japan for the Tokyo Olympics, the presidential Blue House in Seoul announced Monday, ending the prospect of bringing Moon together with Prime Minister Yoshihide Suga for their first in-person summit.

Although Tokyo-Seoul ties would take a hit from the decision, the South Korean side emphasized the two sides had held “meaningful discussions” on the visit, a possible sign of progress in repairing their damaged relationship.

Still, the move was also expected to have wider implications, putting a damper on U.S. efforts to bring its two allies closer as Washington seeks to create a united front in taking on Chinese assertiveness and reining in North Korea’s nuclear ambitions.