Essential Facts
Background
- Great Britain and France were at war with each other during the Napoleonic Wars.
- They were using blockades and trade embargoes to disrupt each other’s trade with foreign nations, such as the United States.
- Britain used Orders in Council, while the French Emperor, Napoleon Bonaparte, used the Continental System.
America Responds to European Trade Restrictions
- The Embargo Act was passed by Congress on December 22, 1807.
- It stopped nearly all American exports to foreign countries.
- President Thomas Jefferson hoped to pressure Britain and France into recognizing America’s maritime rights as a neutral nation.
Additional Details
- The Embargo Act of 1807 was also known as “Jefferson’s Embargo.”
- It resulted in a significant decline in imports and exports for the United States, which hurt the nation’s economy.
- The Embargo Act was repealed in 1809 and replaced by the Non-Intercourse Act of 1809.
Significance
The Embargo Act of 1807 is important to American History because it contributed to the tensions between the United States and Great Britain that led to the War of 1812. The Act was an early attempt by the U.S. to use economic sanctions against a foreign power. Its failure highlighted America’s weakness in foreign affairs and increased the popularity of the Federalist Party.
Embargo Act of 1807 Overview and History
The Embargo Act was passed by Congress on December 22, 1807. It stopped almost all exports from the United States and was intended to force Great Britain and France to give U.S. ships free and uninhibited access to the seas. President Thomas Jefferson believed the embargo would pressure Great Britain and France into recognizing America’s maritime rights as a neutral nation.
The United States and the Napoleonic Wars
- The United States was a neutral nation during the Napoleonic Wars.
- American merchants engaged in reexport trade to avoid seizures by warring powers. The scheme involved shipping goods from European colonies to the United States and then from the U.S. to Europe.
Impact of the Trade War Between Britain and France on the United States
- By 1807, the war between Great Britain and France was at a stalemate.
- Napoleon dominated Europe, while Great Britain controlled the seas.
- Both nations turned to economic warfare.
- Napoleon’s Continental System, which started with the Berlin Decree (1806), was established to block British ships from entering European ports.
- Great Britain responded with Orders in Council. They required nations trading in European ports to obtain a license from Britain.
- Napoleon issued the Milan Decree (1807), ordering the seizure of any ship that stopped at British ports.
- The United States was caught between the sanctions issues by Britain and the United States.
The Chesapeake-Leopard Affair and America’s Response
- The Chesapeake-Leopard Affair occurred on June 22, 1807.
- A British warship fired on an American warship and seized four crewmembers.
- This incident almost led to war between the United States and Great Britain.
- There was significant tension in the U.S. throughout the summer.
- President Thomas Jefferson sought to avoid war through economic measures.
- Jefferson believed Europe needed U.S. exports, mainly food, cotton, and tobacco, more than the U.S. needed European luxury goods.
- Congress passed the Embargo Act of 1807, which prevented U.S. ships from sailing to foreign ports and closed trade with Florida and Canada.
Economic Impact of the Embargo Act of 1807
- The United States economy was more dependent on foreign markets than Jefferson thought.
- The Embargo Act damaged the economy, particularly for farmers and traders.
- Export values dropped from $108 million to $22 million within a year.
- Imports fell from $144 million to $58 million.
- The reexport trade with European colonies declined.
- Sailors and maritime workers struggled to find jobs.
- Prices for wheat, tobacco, cotton, and rice fell.
- Bankruptcies and foreclosures increased, affecting many farmers.
- Smuggling increased along the borders and in coastal seaports.
- President Jefferson accused Americans living near Lake Champlain of forming “insurrections” to trade illegally with Canada.
Political Consequences of the Embargo
- Jefferson’s second term as President suffered due to the embargo.
- The Federalist Party gained strength in 1808, especially in New England.
- John Quincy Adams was forced out of the Senate by Federalist opposition.
- Federalists made political gains in New York and other regions.
- Federalist leaders like Josiah Quincy and Timothy Pickering criticized the embargo, claiming it harmed the United States more than Great Britain.
Ogrambe Appears in the Newspapers
- Federalist newspapers mocked the embargo by rearranging the letters into “Ogrambe.”
- They referred to U.S. ships as “Ogrambe Cutters.”
- Law enforcement officials were referred to as “General Ogrambe.”
- Political cartoons depicted merchants being threatened by a sea turtle named “Ograbme.”
Presidential Election of 1808
Despite the resurgence of the Federalist Party, the Democratic-Republican candidate, James Madison, won the 1808 Presidential Election.
Repeal of the Embargo and Introduction of the Non-Intercourse Act
- As President James Madison prepared for his inauguration, both parties saw the embargo as ineffective, and it was repealed before Madison took office.
- Congress passed the Non-Intercourse Act of 1809, which reduced trade restrictions.
- The Non-Intercourse Act allowed trade with nations other than Great Britain and France.
French Reaction — Bayonne Decree of 1808
- Napoleon responded to American economic sanctions with the Bayonne Decree (April 17, 1808).
- It declared that American ships were prohibited from foreign trade.
- Any American ship that arrived in a French port should be treated the same as a British ship, meaning it would be seized and impounded.
Embargo Act of 1807 APUSH
The Embargo Act of 1807 is part of the following units, topics, and chapters in the AP US History curriculum:
Unit 4: 1800–1848
- Topic 4.4 — America on the World Stage
American Pageant Notes
- Chapter 11 — Triumphs and Travails of the Jeffersonian Republic (1800–1812)
- Chapter 12 — The Second War for Independence and the Upsurge of Nationalism (1812–1824)
American History Central
- Foreign Affairs in the New Nation
- War of 1812 — Causes of the War, Maritime Disputes
