A trade deficit occurs when a country imports more goods and services than it exports. This means that the value of what it buys from other countries is greater than the value of what it sells to them. For example, if a country imports a lot of electronics from Japan but only sells a small amount of agricultural products to Brazil, it may end up with a trade deficit. Having a trade deficit isn't necessarily bad; it can indicate a strong economy where consumers have the purchasing power to buy foreign products. However, persistent trade deficits can lead to concerns about a country's economic health and its ability to pay off debts to other nations.