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

See Examples For:

trade deficit

Categories like the trade deficit and inventories tend to distort GDP in the short run, but they don’t have a huge impact on the overall economy.

From MarketWatch ● Jul. 30, 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 merchandise trade deficit reached a record $847 billion in 2007.

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

Related Words

• balance of trade
• bop
• trade balance