Tesla just caught a break as Europe slashed planned tariffs on several China-made EVs

The 27-member government bloc began investigating Beijing’s subsidies for EVs made by domestic manufacturers last September. In June, the EU said it would issue new tariffs on Chinese EV imports after a preliminary investigation found that “the battery electric vehicles value chain in China benefits from unfair subsidization, which is causing a threat of economic injury” to European EV makers.

But the European Commission, the executive arm of the EU that oversees regulatory matters, on Tuesday said it would adjust those tariffs based on “substantiated comments on the provisional measures received from interested parties.”

Tesla (TSLA) EVs imported into the EU from China will be hit with a 9% tariff, down from almost 21%, according to the new guidance. Tariffs on three named Chinese firms — BYD (BYDDY), Geely (GELYF), and SAIC — were slightly lowered. Tariffs on BYD’s exports were lowered to 17% from 17.4%; Geely’s were lowered to 19.3% from 19.9%; and tariffs on SAIC’s products fell to 36.3% from 37.6%.

Automakers that have cooperated with the investigation launched by the Commission will face duties of 21.3%, up from 20.8%. Those that did not cooperate with authorities will face tariffs of 36.3%, down from 37.6%.

So far, Tesla is the only firm granted an individual duty rate, due to a request from Elon Musk’s automaker. However, the Commission said several Chinese firms and joint ventures that have not yet started exporting EVs may benefit from a lower rate in the future.

The planned tariffs are a draft of what could be the EU’s final measure once its investigation wraps up before the end of October. The Commission said it has given interested parties its draft decision to “impose definitive countervailing duties on imports” from China; those groups will have until Aug. 30 to submit comments on the Commission’s findings. A majority of the EU’s members must vote in favor of the proposed final duties in order for them to take effect.

Several companies have announced plans to build cars in Europe or on other continents, partially to avoid the EU’s tariffs. BYD is building factories in Turkey, Hungary, and Brazil, while Geely (GELYF)-owned Polestar recently started making its EVs in South Carolina at a Volvo factory.