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Previously Chrome did not take computer DPI settings into account. Now it scales the UI with DPI settings. I found my laptop was at 125% scaling without me knowing.

http://techdows.com/2016/10/fix-chrome-54-looks-zoomed-in.ht...

On Linux on my 32" 4K screen Chromium automatically scales to 150% or so and the top chrome is the height of a Coke can.

I have to start the process with "--force-device-scale-factor=1" to make it stop.

I didn't notice any UI change when I reloaded chrome after updating.

I got the opposite problem (tabs and address bar were bigger after update), and I fixed it by changing the flag "UI Layout for the browser's top chrome" in chrome://flags from "Touch" to "Normal". Maybe this flag can also fix your problem.