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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Discover More

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

The U.S. trade deficit widened in July, according to data published by the Commerce Department Thursday.

From The Wall Street Journal ● Sep. 3, 2026

The US trade deficit in July widened to its largest since March 2025, government data showed Thursday, as imports climbed on the back of the booming AI tech build-out.

From Barron's ● Sep. 3, 2026

Yet GDP was held down by a big increase in the trade deficit and a slower increase in inventories, or unsold goods.

From MarketWatch ● Aug. 26, 2026

The president is also fixated on America’s trade deficit, which is the dollar figure in goods that the U.S. exports to a particular country minus what it imports.

From Slate ● Aug. 25, 2026

As a result, the trade deficit is likely to balloon in 1999 to roughly $900 million.

From The 1999 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• balance of trade
• bop
• trade balance