Trading Around the World  After the Revolution, American overseas trade grew rapidly  One of the most profitable new trades they built up was with China –Traders used furs they got from Native Americans to trade with the Chinese

Conflict with the Barbary States  Traders faced great risks, especially in the Mediterranean Sea.  Pirates from the Barbary States, the nations along the coast of Africa, attacked passing vessels  To protect American ships, Americans paid yearly tributes (bribes) to the rulers of Barbary states such as Tripoli.

Tripoli  In 1801, Tripoli increased its demands. –Jefferson refused to pay and Tripoli declared war on the United States. –Jefferson then ordered a blockade of Tripoli. –The conflict ended when American marines landed on the north coast of Africa and marched 500 miles to launch a surprise attack on Tripoli.

American Neutrality is Violated!  In 1803, France and Britain went to war again.  At first, American merchants benefited by trading with both sides.  However, neither Britain nor France wanted supplies to be sold to their enemies, so they both resorted to different tactics to stop this. –Napoleon seized American ships bound for England. –The British stopped Yankee traders on their way to France. The British needed men and so forced the policy of impressment – the practice of forcing people into service. The British stopped American ships and forced Americans into service, which outraged many American citizens.

Jefferson Tries an Embargo  Jefferson knew the small American fleet was no match for the British navy so he sought a way to avoid war.  Jefferson imposed an embargo (ban on trade) on both France and England. –However, it soon turned into a ban on ALL foreign trade.  The Embargo Act hurt both countries but it hurt American merchants even more because imports such as sugar, tea, and molasses stopped and exports dropped more than $80 million.  American merchants protested and turned to smuggling – importing or exporting goods in violation of trade laws

A Limited Ban  In 1809, Jefferson admits the failure of the Embargo Act  Congress replaced it with the Nonintercourse Act– allowed Americans to carry on trade with all nations except Britain and France –The embargo was the most unpopular measure during Jefferson’s presidency