Jimspot linked up this article which provides a nice reality check on the trade-deficit chicken-littles:

When you buy goods, you give them dollars in exchange for hard assets or services. For instance, when you buy a Toyota you might have a $30,000 trade deficit with the Toyota dealership. But does that really mean you are any worse off? After all, you received a hard asset worth $30,000.

As always, read the whole thing.