An escalation of trade tensions between the United States and China could drive down the global economy and multinational companies would suffer, said Sergio Ermotti, chief executive of UBS Group, on Saturday.

The trade situation between the two countries needs to be taken seriously as it will have global ramifications, and an escalation of the situation could be dangerous, Ermotti told China Daily on the sidelines of the China Development Forum.

While it is early to make a judgment on how the events will play out, the head of the Swiss bank said that it is not just a US and China issue, and the ramifications of potential moves of the US and what the countries may do to each other may trigger a complex situation.

"For the time being, we do not expect the measures so far to have a major effect on the economies and the financial markets, but if things move beyond where we are today, that will be our concerns," Ermotti said.