If you gear down (you are cruising in fourth gear and 'gear down' to third gear), your vehicle's speed will reduce.
Brake lights are triggered by the brake pedal or lever/pedal on a motorcycle.
In the case of engine braking, the brake lights are not triggered. Drivers behind them can't anticipate stopping without such a signal.
Try it yourself! Some automatic cars, you can gear down, or just pull your parking brake a little. Cars behind you will come dangerously close to hitting you. Also, don't try this.
Wait, do new cars' parking brakes trigger the brake lights? I also wonder about regenerative braking in electric cars where they slow down simply by lifting your foot off the accelerator.
It's not even specific to the ones with the stick. I happen to enjoy and prefer vehicles with three pedals, but I can say from personal experience that a Ford AODE, 4R70W, or 4R100 will hit hard enough to scare passengers when you drop a gear at highway speed.
A Chrysler 45RFE on the other hand will make a lot more noise but basically no braking effort when you downshift.
(kidding. IIRC EVs do regenerative braking (and trigger the brake lights) when you lift off the accellerator.)