I am not sure why the trade deficit has been brought up, other than it is in the news at the moment, but it is pretty irrelevant to this whole conversation.
The trade deficit just means that the value of imports were less than that of exports over a given time. It has nothing to do directly with government finances and isn't really a great number to compare economies with either.
The budget deficit however is shrinking and is still the lowest in the G7.
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