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

See Examples For:

trade deficit

A surprising surge in the trade deficit is expected to subtract an unusually large 1.0 to 1.5 percentage points from GDP, masking the strength of the underlying economy.

From MarketWatch ● Jul. 29, 2026

It made no sense for politicians in 1776 to sit in a room trying to balance the trade deficit of imported wine over exported British wool.

From The Wall Street Journal ● Jul. 22, 2026

At the time, Rep. Shontel Brown, an Ohio Democrat, asked Agriculture Secretary Brooke Rollins if the delay was due to the report’s having shown a worsening trade deficit in farm goods.

From MarketWatch ● Jul. 18, 2026

Merz also noted that EU's trade deficit with China had been sharply rising in recent years.

From Barron's ● Jul. 17, 2026

The country   remains dependent on external aid and remittances from Tongan   communities overseas to offset its trade deficit.

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

Related Words

• balance of trade
• bop
• trade balance