balance of trade

American  

[bal-uhns uhv treyd] / ˈbæl əns əv ˈtreɪd /

noun

Economics.

1. the difference between the values of the exports and imports of a country, said to be favorable when exports are greater, and unfavorable when imports are greater.

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balance of trade British  

noun

1. Also called: visible balance.  economics the difference in value between total exports and total imports of goods Compare invisible balance

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balance of trade Cultural  

1. That part of the balance of payments relating to goods only (as opposed to services, monetary movements, official reserve transactions, etc.).

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Discover More

A nation whose imports are worth more than its exports is said to have an unfavorable balance of trade, or to be running a trade deficit.

Etymology

Origin of balance of trade

First recorded in 1660–70

Example Sentences

In addition to paying tuition, they pay American businesses for food, shelter, transportation, and entertainment while they are here, supporting 400,000 American jobs and creating a double “win” for the balance of trade.

From Slate • Apr. 24, 2025

India has already slashed tariffs on some US goods, with further cuts expected as the balance of trade is still stacked heavily in favour of Delhi, which enjoys a $45bn trade surplus.

From BBC • Apr. 21, 2025

Under the Canton system, China increased its trade with Europe and improved its economy, while rejecting most European trade goods and insisting on payment in silver, acquiring a very favorable balance of trade.

From Textbooks • Dec. 14, 2022

"Factors such as a strong balance of trade and the tax period are currently working in favour of the rouble," said Otkritie Research.

From Reuters • Jun. 22, 2022

It is the founding concept of modern social science: David Hume’s theory of the balance of trade and Adam Smith’s conception of the market depend on the concept of a feedback mechanism.

From "The Invention of Science" by David Wootton

Related Words

• balance of payments
• trade deficit