The March trade deficit narrowed from $41.9 billion to $40.4 billion; good news. The better news, exports at $193.9 are at their second highest level ever and are 17% above their pre-recession high. Imports, while hitting a new all-time high of $234.3 billion, are just 1% higher than their pre-recession peak. Both imports and exports are up 5% year-over-year. This means overall trade is rising but the trade deficit isn’t.