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

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

U.S. negotiations with Mexico aim to reduce the trade deficit.

From Barron's • May 26, 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 measure aims to narrow India’s widening trade deficit, caused by high energy prices and sustained capital outflows, according to an analyst.

From The Wall Street Journal • May 13, 2026

Information on the country's balance of payments has been kept secret, so that it is impossible to know how the trade deficit has been financed.

From Area Handbook for Romania by Bernier, Donald W.

Related Words

• balance of trade
• bop
• trade balance