trade deficit

American  

[trayd 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

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Etymology

Origin of trade deficit

First recorded in 1855–60

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Example Sentences

See Examples For:

trade deficit

Machinery and vehicles swung to a trade deficit for the first time since January, according to the statistic agency.

From The Wall Street Journal ● Oct. 16, 2026

The U.S. trade deficit expanded in August to its widest in more than a year, as imports of products such as crude oil, gold and semiconductors increased, the WSJ’s Konrad Putzier and Anthony DeBarros write.

From The Wall Street Journal ● Oct. 7, 2026

Perhaps the only seemingly negative news on Wednesday was a surge in the U.S. trade deficit in goods in August to $133 billion, the fourth largest on record.

From MarketWatch ● Sep. 30, 2026

Deep mistrust remains, with their contested Himalayan frontier, a widening trade deficit and strategic rivalry still complicating ties.

From Barron's ● Sep. 11, 2026

Drought, robust import demand, and a strong currency have pushed the trade deficit up in recent years, while infrastructure bottlenecks and a tight labor market are constraining growth in export volumes and stoking inflation.

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

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