Shares rally as US trade deal with Japan lowers tariffs, including on auto imports, in return for a $550bn package of US-bound investment and loans.Trump announces Japan trade deal amid speculation over future of PM IshibaThe US-Japan trade deal has helped to ease investor fears that tariffs are about to snap back higher on 1 August, reports Jim Reid, market strategist at Deutshe Bank.1 August is the latest in a series of deadlines set by Donald Trump for trade partners to reach deals, before higher tariffs kick in.But of course, the threat of much higher tariffs still remains for several large economies, including the 30% on the EU, 35% on Canada and 50% on Brazil.And there’s also the pledge of higher sectoral tariffs, including 50% on copper, so this is far from the end just yet, and those tariffs would each have a significant impact if they did come in.The Cac 40 is higher by more than 1%, as luxury companies and Airbus lead the index higher. These companies are most exposed to US tariffs and are reacting to any hint that tariffs could be milder than expected.German car makers are also higher, as hopes rise for lower tariffs. BMW and Volkswagen are some of the top performers on the Eurostoxx 50 index, as hopes rise for Europe to achieve a similar deal to Japan especially on auto levies&l