trade deficit

[treyd def-uh-sit]

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

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.

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

Word History and Origins

Origin of trade deficit¹

First recorded in 1855–60

Example Sentences

OTTAWA—A retreat in goods exports widened Canada’s trade deficit in August to the second highest on record.

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“The euro area’s trade deficit with China has risen by around 10% this year, although this was driven more by weaker Chinese demand than by diverted trade flows,” she said.

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A much-weakened yen would be detrimental to the White House’s attempts to narrow the U.S.’s trade deficit with Japan and complicate any future U.S.-Japan trade negotiations, at least from Tokyo’s perspective.

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Only our choice of bribe is different: industrial trade deficits, advanced semiconductors, and the transfer of capital and intellectual property.

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That framework includes the highest tariffs on China with the widest trade deficit, and lower tariffs on allies with trade problems and roughly 10% tariffs on neighbors in the Western Hemisphere.

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Related Words

• balance of trade 
• bop 
• trade balance