By 1806 Napoleon had conquered or formed alliances with every country that mattered on the continent. Napoleon dominated the land; Britain dominated the sea. He lacked enough troops to invade Britain. He was unable to conquer Britain’s formidable Navy. Napoleon resorted to an embargo to cripple Britain’s trade.
The Berlin Decree of 1806 outlawed trade with Great Britain. It applied to his allies and countries he had conquered. Britain retaliated with the Order in Council of 1807. Those orders prevented French trade with Britain, neutrals such as the United States, and Britain’s allies. The British Navy also blockaded French ports and all other European ports under French control.
Napoleon responded by upping the ante with the Milan Decree in 1807. All neutral shipping, such as America’s merchant marine, that used a British port, or paid a tariff to Britain, was subject to seizure. His objective was to sever Britain’s trading ties with the United States, the West Indies, and her other colonies.
Portugal refused to comply with Napoleon, causing the Peninsular War. Napoleon invaded Portugal in 1807 and Spain in 1808. He tried to wage a naval war by capturing the Portuguese fleet, and occupying Portugal’s ports. With the help of the British Navy, the King of Portugal eluded him, sailing with his fleet to Brazil, where he set up his court. The Portuguese revolted, and the British intervened in their defense. Napoleon pressured the Spanish King and his family to resign. Napoleon installed his brother, Joseph Bonaparte, as the new king of Spain.
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