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trade deficit

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

noun

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


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.


Discover More

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

Etymology

Origin of trade deficit

First recorded in 1855–60

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Spain's own trade deficit with China, Sanchez added, accounts for 74 percent of the European country's total deficit.

From Barron's • Apr. 12, 2026

Among the expected requests: large quantities of purchases by China, specifically for orders of soybeans, Boeing aircraft and American energy exports to slash the persistent bilateral trade deficit, The Wall Street Journal has reported.

From The Wall Street Journal • Apr. 10, 2026

This “formula,” it was quickly discovered, actually just represented the trade deficit with each country.

From Salon • Apr. 5, 2026

The trade deficit widened by $10.5 billion in February, excluding imports and exports of gold that aren’t counted in GDP.

From Barron's • Apr. 3, 2026

Major concerns continue to be   the sizable trade deficit and unsustainable foreign debt.

From The 2008 CIA World Factbook by United States. Central Intelligence Agency