Most importantly, the Jay Treaty opened up friendly commercial trade, which was quite beneficial to both America and Britain for the next decade.  Between 1795 and 1800, the "value of all American exports to the British Empire rose by 300 per cent", and on the other side, "the United States was Britain's best customer" (Perkins, 13).  This did have an eventual negative effect, as it made future neutrality difficult: when Jefferson was president, he tried to display American neutrality by cutting of trade with both England and France, but this resulted in a depression in the Northeastern economy which had grown so dependent on British trade. However, the overwhelming economic impact was positive, and England's protection on the high seas was invaluable. In "a decade of world war and peace, successive governments on both sides of the Atlantic were able to bring about and preserve a cordiality which often approached genuine friendship" (Perkins, 1).

To the French, the treaty did not sound like neutrality, but an alliance with Britain and a violation of former Franco-American treaties, and America shifted from being on the verge of war with Britain to soon being on the verge of war with France.  A treaty between France and America required that, if either country was at war, merchant ships provide detailed certificates or risk seizure. France, in response to Jay's Treaty, began to enforce this agreement: "American vessels seldom sailed with such detailed papers, and in 1795 France seized more than 300 American merchant ships, which in turn were sold as prizes in French courts" (Mariners' Museum).  This obviously strained relations with France, and the next years saw more and more tension between the two new governments, reaching a height of tension during the Adams administration.

Spain also grew friendlier as a result, fearing the possibility of an Anglo-American alliance against them.  Shortly after passage of Jay's treaty, Spain and the U.S. negotiated Pinckney's treaty (or the Treaty of San Lorenzo Real), which gave America free navigation of the Mississippi, a port of deposit at New Orleans, and ended Spanish claims of the Old Southwest (what would eventually become Alabama and Mississippi) (Harper, 148).

A 1795 cartoon depicting Washington warning party men to let all three pillars of Federalism, Republicanism, and Democracy stand to hold up Peace and Plenty, Liberty and Independence. At the left a Democrat says "This Pillar shall not stand__ I am determin'd to support a just and necessary War__" and at the right a Federalists claims, "This Pillar must come down_ I am a friend of Peace__". From http://en.wikipedia.org/wiki/Image:%7Eparty3.JPG.

At home, the controversy over the Treaty had highlighted the growing "party spirit" of the new Republican country.  The first party system, though not parties in the modern sense, split more along foreign policy issues than domestic, as seen by the factions violently for and against the Jay Treaty.  While both largely for isolation and neutrality, pro-British and pro-French factions began to emerge (though they would at times be better described as anti-French and anti-British).  The Federalists emerged as the party of Hamilton, preferring good relations with the naval and commercial superpower of Britain to facilitate American economic growth.  The Democratic-Republicans were led by Jefferson and Madison, expressing a sense of obligation to honor the Franco-American alliance from 1778 and aiding a sister new-born republic (Jefferson, though opposed to the treaty, did honor its terms when he became president).

The Jay Treaty remained in effect until the Treaty of Ghent (1815) replaced it following the Anglo-American War of 1812.