The XYZ Affair had a lasting impact on the U.S., even after peace was restored. The U.S. was not at all prepared for a naval battle, so the Department of the Navy was created in 1798 to oversee all naval affairs. Negative feelings about France resulted in the Alien and Sedition Acts in 1798
An incident in which french agents attempted to get a bribe and loans from US diplomats in exchange for an agreement that French privateers would no longer attack American ships. It led to an undeclared Naval War between the two countries.
