The European Union is proposing to cut tariffs on Chinese electric vehicles imported from China, singling out Teslas made in China for a lowest rate of 9%. 

The EU Commission first enacted provisional tariffs on imported Chinese EVs in July, following a nine-month investigation into whether certain automakers in China had been benefiting from unfair government subsidies. The provisional tariffs on imported EVs range between 21% and 38% depending on the level to which some automakers cooperated with the EU's investigation, and are scheduled to expire in November. Ahead of that deadline, the EU is looking at the possibility of updated, more permanent tariffs that would be in place for the next five years. 

On August 20, the EU released a draft for those five-year tariffs, which would instead range between 17% and 36.3% for most EVs imported from China, with an exception for Tesla, at 9%. Although Tesla — which produces its Model 3 in Shanghai — was initially included in the group of manufacturers that hadn't cooperated with investigators, its proposed rate was lowered in the new draft after the automaker petitioned the EU to take a closer look at the subsidies the company receives from the Chinese government. 

The EU's draft says that the proposed tariffs are still subject to change, as it gathers feedback and comments from its member states. The EU Commission will then vote on a final version in the weeks to come, which would take effect on October 30.