How did the XYZ Affair affect the American economy?

The XYZ Affair affected American taxes and trade. Following Talleyrand's demands for bribes and loans, John Adams got Congress's blessing to expand the United States Navy through the construction of warships and fortify the country's coastal defense using taxpayer money. He also canceled trade treaties that the United States had made with France during the Revolutionary War.
Adams made it clear to France that he was ready to go to war, and the two nations did go to war—kind of. The ensuing conflict, which became known as the Quasi-War, led to some bloodshed in the Atlantic, but no formal declaration of war was made by either side. Given Adams's bolstering of the American military, Talleyrand quickly changed his tune and agreed to meet with American negotiators.
In 1799, Adams sent more diplomats to Paris and, after several weeks of negotiations, America and France signed the Treaty of Mortefontaine, which established a new partnership between the two countries. Most notably, each gave the other "most favored nation" trade status, reversing the economic damage done by halting trade in the preceding years.
https://history.state.gov/milestones/1784-1800/xyz