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.

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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

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Etymology

Origin of trade deficit

First recorded in 1855–60

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Example Sentences

See Examples For:

trade deficit

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

The currency bloc’s energy trade deficit continued to narrow in July following a sharp deterioration earlier in the year, as the outbreak of conflict in the Middle East drove up the cost of energy imports.

From The Wall Street Journal ● Sep. 15, 2026

Foreign trade data is also due, which DBS expects to show a wide goods trade deficit at $30 billion, reflecting an improvement in exports coupled with a rising energy import bill.

From The Wall Street Journal ● Sep. 11, 2026

However, deep mistrust remains, with their contested frontier, a widening trade deficit and strategic rivalry still complicating ties.

From Barron's ● Sep. 10, 2026

The country   remains dependent on external aid and remittances from Tongan   communities overseas to offset its trade deficit.

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

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Related Words

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