What is a Trade Deficit?
A trade deficit occurs when a country imports more goods and services than it exports, creating a negative trade balance. In contrast, exporting more than is imported results in a trade surplus. Learn more about how global tariffs impact trade here .
What do trade deficits have to do with tariffs?
Often a government who imposes tariffs on imported goods will cite trade deficit as one of the reasons for doing so. It could be that the government sees a large and long-standing deficit with a particular trade partner as evidence that their trade relationship is unfair, or at least imbalanced. It could be that the trade deficit prompts a government to impose tariffs in order to protect domestic industries–although some domestic businesses may actually depend on imported parts or goods, and so they too can end up being financially impacted by the tariffs.
How do trade deficits impact global businesses?
Trade deficits can have a generally positive impact on importers, as they indicate demand for imported goods and services in that country. However, as we mentioned above, trade deficits can prompt governments to impose tariffs in order to boost domestic industries–and this can lead to an increase in costs for exporters, importers, the end consumer, or a combination of them all.
We’ll be following the global trade news closely, so look out for more articles explaining some of the key terms in the story.
Related resources
Bangladesh’s Digital Revolution: How Service Exporters are Scaling Globally
From freelancing to IT services, Bangladesh is quietly becoming a global services hub. Discover how digital entrepreneurs are tapping new markets, overcoming payment friction, and powering the next chapter of…
Tariffs and Trade: A CFO’s Roadmap for Service Export Growth
CFOs in Bangladesh are reshaping how service exporters scale in uncertain times. As global trade tensions rise, the country’s IT and business services sector is booming—reaching $1.4B in 2024 with…
How to Tap New Trade Corridors: Connecting Pakistan with the UK and Emerging Markets
Pakistan’s exporters are reducing US reliance by tapping the UK and regional markets. With UK trade hitting £4.7B, DCTS benefits, and SEZ-driven efficiency, sectors from textiles to IT are thriving.…
3 Things You Need to Know About Forming a U.S. Company (And How We Can Help You Do It)
For any cross-border business, the current tariff talk coming out of the United States is presenting new challenges. But, as a trusted specialist in borderless business, we have some ideas,…
Leveraging Singapore as a Trade Hub: How Businesses Can Expand into ASEAN and Beyond
Singapore is more than a location—it’s a regional command center. With strong infrastructure, transparent regulations, and seamless financial services, it gives companies a strategic base for ASEAN growth. This guide…
How SMEs Can Leverage Singapore’s Free Trade Agreements (FTAs) to Minimize Tariff Costs and Expand Globally
Singapore’s 27 FTAs are a major but underused advantage for SMEs. Agreements like the RCEP connect Singapore to 14 markets with preferential trade terms, reducing costs and easing market entry.…
Bill vs invoice – what’s the difference between?
Welcome to our guide on the differences between invoices and bill documents. As an eSeller, you’re familiar with these terms but may not know exactly what sets them apart. Not…
How do tariffs get paid?
As the global trade story continues to evolve, we'll be sharing some simple guides to some of the key terminology and processes you might want to know more about. This…
How do I get paid from PropellerAds using Payoneer?
Payoneer delivers a frictionless way to withdraw your PropellerAds revenue with low fees, quick access to funds, and global support.
Latest articles
-
Leave policy in France
Learn about the leave policy in France. This guide covers vacation days, public holidays, sick leave, paternity leave, and maternity leave in France.
-
Leave policy in Spain
Learn about the leave policy in Spain. This guide covers vacation days, public holidays, sick leave, parental leave, and maternity leave in Spain.
-
Leave policy in the Netherlands
Learn about the leave policy in the Netherlands. This guide covers vacation days, public holidays, sick leave, and maternity leave in the Netherlands.
-
Leave policy in Australia
Learn about the leave policy in Australia. This guide covers vacation days, public holidays, sick leave, parental leave, and maternity leave in Australia.
-
Leave policy in Brazil
Learn about the leave policy in Brazil. This guide covers vacation days, public holidays, sick leave, parental leave, and maternity leave in Brazil.
-
Your guide to payroll in Poland
Learn about Poland payroll compliance, timely payments, and accuracy.
Disclaimer
The information in this article/on this page is intended for marketing and informational purposes only and does not constitute legal, financial, tax, or professional advice in any context. Payoneer and Payoneer Workforce Management are not liable for the accuracy, completeness or reliability of the information provided herein. Any opinions expressed are those of the individual author and may not reflect the views of Payoneer or Payoneer Workforce Management. All representations and warranties regarding the information presented are disclaimed. The information in this article/on this page reflects the details available at the time of publication. For the most up-to-date information, please consult a Payoneer and/or Payoneer Workforce Management representative or account executive.
Availability of cards and other products is subject to customer’s eligibility. Not all products are available in all jurisdictions in the same manner. Nothing herein should be understood as solicitation outside the jurisdiction where Payoneer Inc. or its affiliates is licensed to engage in payment services, unless permitted by applicable laws. Depending on or your eligibility, you may be offered the Corporate Purchasing Mastercard, issued by First Century Bank, N.A., under a license by Mastercard® and provided to you by Payoneer Inc., or the Payoneer Business Premium Debit Mastercard®, issued and provided from Ireland by Payoneer Europe Limited under a license by Mastercard®.
Skuad Pte Limited (a Payoneer group company) and its affiliates & subsidiaries provide EoR, AoR, and contractor management services.
