President Donald Trump's new tariffs on China could "shrink" the global economy, said the chief executive of Singapore's second-largest lender by assets, Oversea-Chinese Banking Corp, on Friday.

"It's not good for Asia's economy, it's not good for China, but it's also not good for the U.S. — because ultimately, we are not able to utilize the efficiencies that each of the economies are able to offer, and then grow globally," Samuel Tsien, OCBC's chief executive officer, told CNBC's Martin Soong.

"So, the end result of that is that it is likely to shrink the economy by not being able to take advantage of the efficiencies in each of the different markets," Tsien said.

On Thursday, Trump announced that the U.S. will slap an additional 10% tariffs on $300 billion worth of Chinese goods to the U.S.

The tariffs will take effect from September 1, Trump said on Twitter. It comes amid ongoing trade talks between the two countries, which resumed in Shanghai this week after months of stalled negotiations.

Economists have predicted that several countries would stand to gain from the trade fight, as companies adjust their supply chains and shift manufacturing activity to economies not affected by the tariffs.