Embargo Act of 1807 - Consequences of The Embargo Act

Consequences of The Embargo Act

The Embargo was in fact hurting the United States as much as Britain or France. Britain, expecting to suffer most from the American regulations, built up a new South American market for its exports, and the British shipowners were pleased that American competition had been removed by the action of the U.S. government.

Jefferson placed himself in a strange position with his Embargo policy. Though he had so frequently and eloquently argued for as little government intervention as possible, he now found himself assuming extraordinary powers in an attempt to enforce his policy. The presidential election of 1808, in which James Madison defeated Charles Cotesworth Pinckney, showed that the Federalists were regaining strength, and helped to convince Jefferson and Madison that the Embargo would have to be removed.

Shortly before leaving office, in March 1809, Jefferson signed the repeal of the failed Embargo. In its place the Nonintercourse Act, was enacted, on March 1, which opened American trade with all countries except Britain, France, and their possessions. Madison was given the power to suspend nonintercourse with either Britain or France should one of these countries remove her regulations against American commerce. The Nonintercourse Act proved no more effective than the Embargo, and it proved impossible to prevent American vessels from trading with the European belligerents once they had left American ports.

Despite its unpopular nature, the Embargo Act did have some limited, unintended benefits, especially as entrepreneurs and workers responded by bringing in fresh capital and labor into New England textile and other manufacturing industries, lessening America's reliance on the British merchants.