The treaty between the Hawaiian Kingdom and the United States marked a pivotal moment in Pacific trade relations. Signed in Honolulu, this agreement affirmed exclusive trading rights for U.S. merchants, which was aimed at enhancing economic ties and stability in the region. Prior to this treaty, Hawaii’s economy was heavily reliant on the cultivation of sugarcane and other exports, making the establishment of a strong trading relationship with the U.S. paramount for the kingdom's prosperity and development. King Kalākaua's administration actively pursued these connections, understanding the geopolitical realities of the time, which included the increasingly dominant presence of Western powers in the Pacific.

In the years leading up to the signing, Hawaii was undergoing significant changes. The islands were not only becoming a critical stop for whalers but also a growing center for sugar production. The pursuit of exclusive trade rights was seen as essential for maintaining economic independence and attracting investment. The treaty facilitated a framework through which Hawaii could navigate its economic future while drawing attention from other nations, particularly as the U.S. was expanding its territory and influence abroad. The agreement laid the foundation for future negotiations and agreements between Hawaii and the United States.

Following the signing, the exclusive trade rights provided by the treaty set a precedent for the United States’ involvement in Hawaii's domestic affairs. As American interests grew, so did pressures for annexation, ultimately leading to the overthrow of the Hawaiian monarchy in 1893. This treaty can thus be seen as a double-edged sword, providing immediate economic benefits while also paving the way for the eventual loss of sovereignty.