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

The US trade deficit in July widened to its largest since March 2025, government data showed Thursday, as imports climbed on the back of the booming AI tech build-out.

From Barron's ● Sep. 3, 2026

The U.S. trade deficit widened in July, according to data published by the Commerce Department Thursday.

From The Wall Street Journal ● Sep. 3, 2026

The trade deficit, what’s more, is unlikely to depress GDP in the third quarter.

From MarketWatch ● Aug. 26, 2026

The president is also fixated on America’s trade deficit, which is the dollar figure in goods that the U.S. exports to a particular country minus what it imports.

From Slate ● Aug. 25, 2026

Major concerns continue to be the sizable trade deficit and unsustainable foreign debt.

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

Related Words

• balance of trade
• bop
• trade balance