The situation that occurs when a country imports more goods and services than it exports. In other words, the value of what a country buys from other nations exceeds the value of what it sells to them. A trade deficit means money flows out of the country to pay for imports.
If the United States exports $100 billion in goods but imports $150 billion in goods in a month, it has a trade deficit of $50 billion. This deficit means Americans are buying more foreign products than foreign consumers are buying American products.
Greater Fool is a free Chrome extension that explains terms like this in place. Highlight a word on any page, click Explain, keep reading.
Add to Chrome (free)