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.

---

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.

---

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

The goods and services trade deficit for the year so far is about 20% smaller than the same time a year ago.

From The Wall Street Journal ● Oct. 6, 2026

The trade deficit for goods reached about $137 billion in August.

From The Wall Street Journal ● Oct. 6, 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

Maintenance of its macroeconomic progress in 1999-2000 depends on continued low inflation, reduction in the trade deficit, and reforms designed to encourage private investment.

From The 1999 CIA World Factbook by United States. Central Intelligence Agency

Random Word

Spin the wheel and learn a new word!

---

Related Words

• balance of trade
• bop
• trade balance

---