How did the Continental System affect British trade and industry?

The Continental System, a blockade initiated by Napoleon during the Napoleonic Wars, aimed to cripple Great Britain by destroying its commerce.1

The system negatively impacted British industry, leading to unemployment that fueled the Luddite protest movement. Additionally, the blockade caused significant strategic difficulties, such as a sharp decline in grain imports from Europe, which drove wheat prices up by nearly 60 percent between 1807 and 1810.12

However, the overall effect on British trade was mitigated by the expansion of markets elsewhere. As exports to northern Europe plummeted, British trade grew significantly in South America and the Mediterranean, which helped offset losses. While British exports fell by approximately 13 percent between 1806 and 1808, the volume of British foreign trade rebounded, rising by more than 33 percent in 1809. Ultimately, the blockade proved more damaging to the French economy, which suffered a 27 percent decline in exports during the same period.2