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.

---

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

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

The US trade deficit shrank slightly in April, government data showed Tuesday, with energy exports bolstered by a supply crunch following war in the Middle East.

From Barron's • Jun. 9, 2026

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

"Should we get a resolution that leads to a recovery in oil and gas supply then the US trade deficit will quickly deteriorate once again," he said.

From Barron's • Jun. 9, 2026

The annual trade deficit in 1967 and 1968 was about 200 million leks.

From Area Handbook for Albania by Elpern, Sarah Jane

Related Words

• balance of trade
• bop
• trade balance