BANFF, Canada (Kyodo) -- The leaders of Japan and Germany agreed Monday to step up cooperation in the fields of defense and economic security as they discussed the situation in the Indo-Pacific, where China and North Korea are posing security challenges, as well as in Ukraine.

Meeting on the sidelines of the Group of Seven summit in Canada, Japanese Prime Minister Shigeru Ishiba and German Chancellor Friedrich Merz also exchanged views over U.S. tariff measures, a senior Japanese government official said, without giving further details.

The two agreed on the importance of alignment among G7 members in the face of the severity of the global environment at the outset of their meeting, according to the Japanese government.

North Korea's missile and nuclear development and Pyongyang's past abductions of Japanese nationals were among the issues the leaders took up, according to the official.

Japan and Germany see each other as important partners who share values and principles such as democracy and the rule of law and have been forging closer ties.

Ishiba and Merz met in person for the first time after the German leader assumed the post in May.