That is to say, within a certain unit time (usually calculated on an annual basis), both trading parties buy and sell various commodities and import and export each other. Party A's export amount is greater than Party B's, or Party A's import amount is less than Party B's. This difference is called trade surplus for Party A, and on the contrary, it is called trade deficit for Party B. Generally speaking, as far as the interests of both trading parties are concerned, the one who gets the trade surplus is the one who takes advantage, and the one who gets the trade deficit is the one who suffers. It can be seen that trade is to make money. On the other hand, the party with a trade surplus has made a net profit; On the other hand, the party with a trade deficit paid a net amount.
When a country has a trade deficit, it means that its foreign exchange reserves are reduced and the international competitiveness of its goods is weakened, during which its foreign trade is at a disadvantage. A large trade deficit will aggravate the outflow of domestic resources, increase foreign debts and affect the normal and effective operation of the national economy. Therefore, the government should try to avoid a long-term trade deficit.
References:
Baidu encyclopedia-surplus deficit