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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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 latest delayed report to come out, meanwhile, was about the size of the U.S. trade deficit in August.

From MarketWatch

The U.S. trade deficit shrank in August, the Commerce Department said Wednesday, giving a delayed look at how tariffs were shaping international trade flows over the summer.

From The Wall Street Journal

The Philly Fed manufacturing survey is due at 8:30 a.m., alongside the August U.S. trade deficit.

From MarketWatch

Germany runs a substantial trade deficit with China.

From Barron's

Mexico's trade deficit with China rose to a record of nearly $120 billion last year.

From Barron's

Related Words

• balance of trade
• bop
• trade balance