During the 1770s, the Netherlands was an important trading nation with strong connections to merchants in North America. Even before the American Revolution began, Dutch traders sold goods to the colonies, and by 1774, they were sending gunpowder, muskets, and other war supplies. The Dutch government attempted to remain neutral in order to maintain trade with both Britain and the Americans, but many merchants secretly supported the Patriot cause.
When the Americans won at Saratoga in October 1777, it showed Europe that the Continental Army could defeat a major British force. Dutch merchants continued to trade with the Americans and the French, even though the Dutch government officially stayed neutral. The tiny Dutch-controlled island of St. Eustatius became especially important, earning the nickname “Golden Rock” because of the huge amount of supplies sent to the revolutionaries. In November 1776, the island’s governor had already given the first foreign salute to an American flag.
British leaders were angered by Dutch trade with their enemies. They tried to stop ships from leaving Dutch ports and seized many vessels carrying goods to the Americans. The situation worsened after France joined the war in 1778. Britain feared the Dutch would also help France, and tensions grew.
By 1780, Britain had intercepted a draft treaty between the United States and Dutch officials. Around the same time, the Netherlands joined the League of Armed Neutrality, a group of European nations that opposed British interference with trade. Britain responded by declaring war on the Dutch in December 1780, starting the Fourth Anglo-Dutch War.
The Dutch provided loans to the United States and continued to supply goods, even though the war hurt their overseas trade. Still, their involvement meant Britain faced yet another opponent, stretching its navy and resources across more parts of the world while the fighting in America continued.