In 1803, war erupted between Great Britain and France. American ships capitalized on the commercial opportunities presented by this conflict. However, the British soon implemented a blockade on French ports and commenced the seizure of American vessels. Compounding this issue, the British Navy began impressing American sailors and even passengers, as they did not acknowledge the right of British subjects to emigrate and thus considered American sailors as their subjects. As a result, between 4,000 and 10,000 sailors were forcibly recruited into the British Navy.

From 1803 to 1807, the British captured 500 American ships, while the French seized 300. President Jefferson described the British and French actions as one being "a den of pirates" and the other "a den of robbers."

The seizure of the "Chesapeake" was particularly egregious among the British direct actions, but Britain's move to block all trade with Continental Europe further violated what Americans viewed as their neutral rights.

These actions by the British incited outrage in America, leading to immediate calls for war. However, President Jefferson sought to avoid conflict at all costs, believing that the U.S. could achieve its objectives through commercial measures. Additionally, Jefferson was fixated on the idea of creating a fleet of gunboats for the protection of American cities, especially after the perceived failure of the Navy in the "Chesapeake" Affair. His proposal to prioritize the construction of gunboats over ocean-going ships found favorable support in Congress.

Jefferson then decided to impose an embargo on both warring nations, assuming that Britain and France depended heavily on U.S. trade and would thus respect American neutrality.

Unfortunately, Jefferson's calculation was incorrect. The embargo's sole effect was to debilitate all American trade, with New England’s trade suffering the most significant impact.