Prime Minister Malcolm Turnbull and German President Frank-Walter Steinmeier have discussed the fact that political tensions are increasing and threatening global peace and prosperity.
German Chancellor Angela Merkel has been called the new leader of the free world after the election of Donald Trump in the US and Mr Steinmeier suggested the president's leadership style in promoting protectionism was a concern for Germany and the EU.
Mr Turnbull said "rapid changes in the global environment" meant it was more important then ever that liberal democracies such as Germany and Australia worked together to promote their values.
"The liberal international order has delivered unprecedented peace and prosperity for seven decades," he said in Perth after the meeting.
"We cannot take for granted the rules based order."
He cited North Korea's "reckless actions".
Mr Steinmeier, who is Germany's head of state, said Asian countries such as Singapore were worried about the US ahead of an upcoming visit by Mr Trump.
"The whole region is awaiting with heightened tension the upcoming visit by the American president to the region, hoping for new signals and indication of a recommitted engagement of the US to the region," he said, with the US seen as a counterbalance to China.
"We need to talk about issues like the influence of rising powers, formerly important powers, and new superior global powers on the rise again."
A more protectionist US increased the importance of negotiations for a free trade agreement between the EU and Australia, he added.
