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.

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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.

Etymology

Origin of trade deficit

First recorded in 1855–60

Example Sentences

The US trade deficit shrank slightly in April, government data showed Tuesday, with energy exports bolstered by a supply crunch following war in the Middle East.

From Barron's • Jun. 9, 2026

With imports from countries other than the U.S. down 1.5%, the trade deficit with non-U.S. countries widened to C$6.76 billion from March’s C$6.03 billion.

From The Wall Street Journal • Jun. 9, 2026

Australia recorded a goods trade deficit in March, defying expectations for a surplus.

From The Wall Street Journal • May 29, 2026

The US goods trade deficit with India was $58.2bn in 2025, a 27.1% increase over 2024.

From BBC • May 23, 2026

The cumulative trade deficit at the end of 1970 amounted to about 5.1 billion lei—the equivalent of about US$850 million.

From Area Handbook for Romania by Bernier, Donald W.

Related Words

• balance of trade
• bop
• trade balance