trade deficit

[ treyd def-uh-sit ]

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. Compare trade surplus ( def ).

trade deficit

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 .

Notes

Trade deficits, because they imply that capital is leaving a country, can cause higher interest rates .

Word History and Origins

Origin of trade deficit¹

First recorded in 1855–60

Example Sentences

Trump has also proposed new tariffs of at least 10% on most foreign goods, to cut the trade deficit.

From BBC

He was livid about the US trade deficit with Europe.

From BBC

He has proposed new tariffs of at least 10% on most foreign goods, to cut the trade deficit.

From BBC

Trump has criticised America's trade deficit, which is the difference between the value of all the things the country imports and the value of its exports in a given year.

From BBC

He has been critical of the U.S. trade deficit with Mexico and Canada, and has shown an eagerness to enact tariffs to try to leverage foreign policy goals.

From Los Angeles Times

Related Words

• balance of trade
• bop
• trade balance