What happened in 1807 that caused all importing an exporting of goods to be halted?

The Embargo Act of 1807 was a law passed by the United State Congress and signed by President Thomas Jefferson on December 22, 1807. It prohibited American ships from trading in all foreign ports.

Explanation:

America's neutrality and basic rights as an independent nation had clearly been violated, and something needed to be done about it. Jefferson didn't want war, but he was willing to take economic measures. He hoped that perhaps an embargo would hit the British and French where it would hurt them the most, right in the pocketbook.