Jefferson hoped the Embargo Act would protect American ships and sailors without leading the United States into war. Instead, it caused serious problems at home. American exports dropped sharply. Farmers lost markets where they could sell their crops. Merchants could not ship goods overseas, and many sailors lost their jobs. Smuggling also increased, especially through Canada, making the law difficult to enforce.
The embargo hurt the American economy more than it hurt Great Britain or France. Britain found other places to sell its goods, while France continued to interfere with American trade. Many Americans became frustrated because they were making sacrifices, but Britain's actions did not change. The embargo also caused political disagreements, especially in New England, where many people depended on overseas trade for their jobs and businesses.
In early 1809, just before Jefferson left office, Congress repealed the Embargo Act. It replaced the law with the Non-Intercourse Act, which reopened trade with most countries but continued to ban trade with Great Britain and France. Leaders hoped this new law would pressure both countries while still avoiding war. However, many merchants ignored the law or found ways around it.
When James Madison became president in 1809, he inherited these problems. In 1810, Congress passed Macon's Bill No. 2. This law reopened trade with both Great Britain and France. It promised that if one country agreed to respect American neutral rights, the United States would stop trading with the other. Napoleon claimed France would change its policies, but French ships continued seizing American ships and cargo. Madison responded by cutting off trade with Britain.
Even after these new trade policies, Britain continued to stop American ships and force sailors into the Royal Navy through impressment. Many Americans believed Britain was violating the rights of the United States and refusing to treat the nation as an equal. By 1812, the trade disputes between the two countries had still not been resolved.
Glossary
cargo: goods or supplies carried by a ship, train, truck, or airplane
exports (noun): goods that are sent to another country to be sold