USA HISTORY

Detailed explanation-1: -Embargo Act, Legislation by the U.S. Congress in December 1807 that closed U.S. ports to all exports and restricted imports from Britain. The act was Pres. Thomas Jefferson’s response to British and French interference with neutral U.S. merchant ships during the Napoleonic Wars.

Detailed explanation-2: -Just prior to James Madison’s assumption of office, Congress passed the Non-Intercourse Act of 1809, which replaced Jefferson’s failed embargo. It allowed the resumption of world trade with the exclusion of trade with England and France, thus barring French and British vessels from American ports.

Detailed explanation-3: -The American economy was suffering and American public opinion turned against the embargo. Moreover, goods continued to reach Great Britain through illegal shipments and British trade was not suffering as much as the framers of the embargo had intended.

Detailed explanation-4: -The embargo was an unpopular and costly failure. It hurt the American economy far more than the British or French, and resulted in widespread smuggling. Exports fell from $108 million in 1807 to just $22 million in 1808. Farm prices fell sharply.