Though the British agreed to withdraw from the Northwest Territory, freedom of the seas was not resolved. When news of this failure reached the United States, Democratic-Republicans were incensed. It was a blow to the Federalists which nearly cost their presidential candidate, John Adams, the 1796 election, and served to bolster the growing strength of the Republicans. The problem continued to worsen after the French learned of the British-American treaty. French privateers (Links to an external site.) and revolutionary French men-of-war carried out attacks on American shipping. Between 1798 and 1801, the United States and France engaged in what is called the Quasi (Links to an external site.)-War, in which the U.S. Navy faced its first trial by fire. U.S. Naval squadrons returned the favor of attack on French vessels and in 1801, a settlement was reached with France ending the conflict.
Anti-French attitudes continued to build in the Federalist-dominated Congress during the 1790s. Then, in 1798, after a diplomatic incident in which French officials insulted the American officials by demanding a bribe (Links to an external site.), Congress enacted, and President John Adams signed into law, the Alien and Sedition Acts. They were to stay in effect until 1801, when Jefferson, who was then president, allowed them to expire.