Definition
The difference between what a country sells abroad (exports) and what it buys from abroad (imports).
The story
If a household spends more at stores than it earns from selling things, it runs a deficit. The US does the same with the rest of the world: it buys more than it sells, so it runs a trade deficit. Tariffs are one tool governments use to try to change that gap.
Why markets watch it
Trade feeds into GDP (gross domestic product), and tariff news has made it a bigger story.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms