Final answer:
The Embargo Act of 1807 led to an economic disaster for port towns due to a drastic decline in American business activity, particularly in the shipping and farming sectors. The act resulted in unemployment, bankruptcies, and overall economic hardship while failing to influence the policies of Great Britain and France.
Step-by-step explanation:
The economic impact of Jefferson's embargo on U.S. exports can be characterized as an economic disaster for port towns. When the Embargo Act of 1807 was put into place, the intention was to exert economic pressure on both Great Britain and France, with the hope of ending their harassment and abuse of American shipping. However, the embargo backfired and had a profound negative effect on American commerce, particularly devastating shipping industries and port towns. The embargo resulted in a 75% decline in American business activity between 1808 and 1809, leading to extensive unemployment, an increase in bankruptcies, and widespread economic hardship.
American farmers were particularly hard hit, as they could not export their goods overseas, and seaport cities saw a spike in unemployment. Both Britain and France largely ignored the embargo's intent and continued with their maritime aggression. The Federalist Party, which had been waning, started to regain popularity due to the general discontent with Jefferson and his policies. Ultimately, the embargo was deemed a failure and was repealed in 1809, but not before causing significant damage to Jefferson's presidency and the U.S. economy.