Trade Deficit

Annual amount spent by U.S. individuals, companies, and government agencies on foreign-made products, minus the amount spent by foreign entities on U.S.-made products; accounting for about negative 2% of the GDP.

Note the "negative" in the last line: by definition, the trade deficit is subtracted as an adjustment factor. That's because the other three factors in GDP measure "products made anywhere, bought by Americans"; by subtracting the trade deficit you're left with "products made in the U.S., bought by anybody".

See the interactive GDP Diagram.

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