trade deficit

American  

[treyd def-uh-sit] / ˈtreɪd ˌdɛf ə sɪt /

noun

Economics.

trade deficits plural

1. a negative balance of trade, or the amount by which the value of a country’s imports exceeds that of its exports.

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trade deficit Cultural  

1. The condition that exists when the value of what a country imports exceeds the value of what it exports; also called an unfavorable balance of trade.

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Trade deficits, because they imply that capital is leaving a country, can cause higher interest rates.

Other Word Forms

Noun Inflected Forms

• trade deficits
  plural

Etymology

Origin of trade deficit

First recorded in 1855–60

Example Sentences

See Examples For:

trade deficit

Forget arcane economics—does anyone really care if Pennsylvania runs a trade deficit with New Jersey?

From The Wall Street Journal ● Jul. 22, 2026

At the time, Rep. Shontel Brown, an Ohio Democrat, asked Agriculture Secretary Brooke Rollins if the delay was due to the report’s having shown a worsening trade deficit in farm goods.

From MarketWatch ● Jul. 18, 2026

The U.S. could run a big trade deficit in the second quarter, and large trade gaps depress GDP.

From MarketWatch ● Jul. 17, 2026

Merz also noted that EU's trade deficit with China had been sharply rising in recent years.

From Barron's ● Jul. 17, 2026

The cumulative hard currency trade deficit with the West reached US$1.2 billion in 1969 and an estimated US$1.5 billion in 1970.

From Area Handbook for Romania by Bernier, Donald W.

Related Words

• balance of trade
• bop
• trade balance