Final answer:
The XYZ Affair was a diplomatic scandal in 1798 where French diplomats demanded bribes from the US, leading to public outrage and the Quasi-War. President John Adams balanced between war and diplomacy while the incident exacerbated partisan politics and led to the Alien and Sedition Acts.
Step-by-step explanation:
The bottom line of the XYZ Affair was a significant diplomatic incident that occurred during John Adams's presidency. It involved a French demand for bribes from American diplomats as a precondition for negotiating to resolve tensions and protect American shipping. When President Adams made these demands known, public outrage ensued, leading to the Quasi-War, an undeclared naval war between the United States and France. This affair also saw a rise in partisan conflict domestically, with Federalists and Republicans deeply divided in their response to the crisis.
President Adams initially withheld information about the bribery attempt from Congress in order to consider his options collaboratively with his cabinet. Despite some members advocating for war, Adams ultimately chose a path of limited hostilities while seeking a peaceful resolution. Nonetheless, the political ramifications were significant. The Federalist-led push to arm merchant ships and enact the Alien and Sedition Acts deepened partisan tensions. Conversely, many Republicans remained suspicious, some even accusing Adams of fabricating the affair to consolidate power.
Ultimately, the XYZ Affair disrupted Franco-American relations, led to the demise of the French Directory's influence in America, and contributed to the downfall of the pro-French Democratic-Republican sentiment of the era. Additionally, it bolstered the Federalist Party's political standing for a time and laid the groundwork for contentious domestic policies targeting immigrants and opposition voices.