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Content: New England shipbuilders saw their businesses decline. Exports fell steeply. Smuggling became widespread. Seaport cities were abandoned. How did the conflict with Britain and France change the role of the federal government during Jefferson's administration? The Embargo Act was Jefferson's attempt to avoid a military conflict with Europe. It increased the power of the government by restricting trade. How did the War of 1812 influence American economic policy? Businesses became supportive of tariffs. It led to the creation of a national bank.