The United States made a significant shift in its international trade policy by terminating the reciprocity and fishery agreement with Canada. The agreement, originally established in 1854, facilitated trade between the two nations by eliminating tariffs on goods traded across borders and granting mutual fishing rights along the Atlantic coast. The arrangement was beneficial, particularly for the U.S., which sought to increase exports while simultaneously allowing Canadians access to U.S. markets. However, by the mid-1880s, debates emerged over changing economic priorities, leading the U.S. government to reconsider its commitment to reciprocity.

The late 19th century marked a period of intense fiscal and industrial growth for the United States as it strived to protect its burgeoning domestic industries from foreign competition. By terminating the reciprocity agreement, the U.S. aimed to stimulate its own fishing industry, particularly in New England, which had experienced hardships due to overfishing and competition from Canadian fishermen. This decision reflected a broader trend towards protectionism in U.S. trade policy that would gain momentum in the following decades.

The cancellation of the agreement reverberated through the Canadian economy, leading to unease among fishermen and exporters who relied on unrestricted access to American markets. The fishing rights were particularly vital for Canada, and the perceived unilateral termination of the agreement incited discussions about trade relations and economic diplomacy between the two nations. The U.S. move potentially strained its relationship with Canada and highlighted the challenges of managing transnational interests amid rising nationalism.