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trade deficit

American  
[treyd def-uh-sit] / ˈtreɪd ˌdɛf ə sɪt /

noun

Economics.
  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.

Etymology

Origin of trade deficit

First recorded in 1855–60

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The bloating trade deficit, that's hitting the EU as a whole, is being dubbed the latest "China shock".

From BBC

The U.S. has run trade deficits for most years since the mid-1970s.

From The Wall Street Journal

Surging chip imports from Taiwan to feed the AI boom also helped prop up the trade deficit.

From The Wall Street Journal

What a relic, which wasn’t intended to manage a trade deficit per se.

From The Wall Street Journal

The U.S. trade deficit in goods rose to a record high of $1.24 trillion in 2025, driven by a 4.3% increase in goods imports, according to data published Thursday by the Census Bureau.

From The Wall Street Journal