How did British Orders in Council restrict American trade before the War of 1812?

The British Orders in Council issued in late 1807 significantly restricted American trade by imposing a blockade on Napoleonic Europe. These regulations mandated that any neutral vessel—primarily American—wishing to trade with France or its colonies must first stop at a British port.1234

At these ports, neutral ships were required to:
* Obtain a license to trade with the enemy.34
* Pay customs duties on their cargo, which were increased to 20–30 percent.4

By forcing neutral trade through British ports, these orders aimed to favor British merchants and ensure that European commerce was funneled through Great Britain. This policy placed American vessels in an impossible position: if they complied with the British requirements, they risked seizure by the French, who declared that any ship submitting to British search or regulation was a lawful prize. Conversely, if they followed Napoleon’s Continental System, they faced capture by the Royal Navy. These restrictions severely damaged the American economy and were a primary grievance leading to the War of 1812.431