u said “As a nation experiences deteriorating terms of trade, it finds itself moving towards a deficit in its current account, meaning that expenditures on imports are growing more than income from exports, also called a trade deficit.”

isnt it the other way round?

when Price of imports increase, due to the reverse J curve, it should therefore be elastic in the long run. This would lead to a decrease in the Value M in the current account, causing BOP to head out of deficit/into a surplus.

Or is the assumption there that it causes a trade deficit in the short run?