Airbus has issued a warning about any escalation of the dispute over aircraft subsidies between the U.S. and the European Union, saying proposed tit-for-tat tariffs will hit the supply chain and the consumer.

The U.S. and the EU have threatened billions of dollars' worth of tariffs be imposed on goods including aircraft, the latest step in a long-running transatlantic dispute at the World Trade Organization.

Airbus Chief Commercial Officer, Christian Scherer, told CNBC that the proposed tariffs "defy economic logic," saying they will end up hurting the consumer.

"What would immediately happen would be retaliation, trade barriers going up, the price of airplane increases, which means airlines have higher costs which they then pass on to the consumer, and then everything slows down."

Speaking with CNBC's Chery Kang on the sidelines of the annual IATA General Meeting, Scherer added that the company's predominantly American-based supply chain would be hurt by the ripple effect of the tariffs, with around 40% of all aircraft-related procurement coming from the United States.

U.S. President Trump last month said his administration would move ahead with tariffs on $11 billion worth of goods, with the USTR claiming the subsidies provided by the European Union to Airbus have adversely affected the United States.