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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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

That yielded an April trade deficit of $55.9 billion, down about 1.2% versus the March level.

From The Wall Street Journal • Jun. 9, 2026

He later told reporters that 29 million jobs were "at very high risk in the coming months due to the trade deficit", citing the European Central Bank.

From Barron's • 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 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

The economy is bolstered by annual remittances from abroad of $600-$800 million, mostly from Albanians residing in Greece and Italy; this helps offset the towering trade deficit.

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

Related Words

• balance of trade
• bop
• trade balance