Henry VII’s foreign policy was shaped by England’s vulnerable position in Europe and his desire to secure recognition of his dynasty. Through careful diplomacy, Henry balanced relations with Burgundy, France, Scotland and Spain, forging treaties that provided both security and commercial advantage.

England’s Position in Europe, 1485

In 1485, Henry VII inherited a fragile throne. England was weaker militarily and economically compared to major European powers, and his usurpation of Richard III left his regime vulnerable. The new king required foreign recognition to consolidate legitimacy, discourage Yorkist pretenders, and secure trade. England’s limited resources forced Henry to pursue diplomacy over warfare, aiming for stability through treaties rather than costly campaigns.

Henry’s diplomacy balanced England’s security with European realities, especially the ambitions of France, the Habsburg–Burgundian nexus in the Low Countries, Scotland on the northern border, and rising Spain.

Europe in 1500, showing the kingdoms and composite states relevant to Henry VII’s diplomacy. Note France, England, Scotland, and the Netherlands/Low Countries under Habsburg influence. This broad context helps explain why each treaty targeted a different neighbour. Source

Relations with France

The Breton Crisis and Treaty of Redon (1489)

Henry’s first major foreign policy test came with the Breton Crisis. France sought to annex Brittany, where Henry had spent part of his exile. England had longstanding ties with Brittany, and French expansion threatened English security.

• Treaty of Redon (1489): Henry agreed to send 6,000 troops, funded by Brittany, to aid Duke Francis II.

• This intervention was cautious, designed to defend but not provoke open war.

• However, Brittany fell to France in 1491 after the marriage of Charles VIII and Anne of Brittany.

Locator map of the Duchy of Brittany within the French realm. Brittany’s absorption by France was the immediate backdrop to Redon (1489) and Étaples (1492). The map focuses only on geography; it does not depict troop movements or treaty clauses. Source

Despite failure, Henry avoided direct confrontation while showing commitment to alliances.

Treaty of Etaples (1492)

Henry invaded France in 1492 with around 12,000 troops, but the campaign was limited. France, preoccupied with Italy, sought peace.

• Treaty of Etaples (1492):

  • France paid a pension of £159,000, equivalent to £5,000 annually, a major financial gain.

  • Charles VIII promised not to support pretenders such as Perkin Warbeck.

This treaty demonstrated Henry’s pragmatic approach: short war followed by profitable peace.

Relations with Spain

Treaty of Medina del Campo (1489)

Spain was emerging as a powerful state under Ferdinand of Aragon and Isabella of Castile. An Anglo-Spanish alliance provided legitimacy and trade security.

• Key Terms:

  • Marriage arrangement between Henry’s son Arthur and Catherine of Aragon.

  • Spain recognised Henry’s dynasty.

  • Trade benefits were granted to English merchants.

  • Mutual military support promised against France.

Though Arthur’s death in 1502 complicated matters, the marriage alliance symbolised international recognition of the Tudor dynasty.

The treaty enhanced England’s standing, tying Henry’s dynasty to one of Europe’s leading powers.

Relations with Burgundy

Trade Importance

Burgundy, especially through the port of Antwerp, was vital for the English cloth trade.

A scholarly reconstruction of Antwerp’s medieval and sixteenth-century enlargements, indicating walls and expansions that accompanied its rise as a European trading hub. This visualises why control and goodwill in the Low Countries mattered to Henry VII. Extra details showing later sixteenth-century phases are included but remain minimal. Source

However, Burgundy’s rulers, particularly Margaret of Burgundy, supported Yorkist claimants, making relations strained.

• Margaret gave refuge to Lambert Simnel and later supported Perkin Warbeck.

• Henry retaliated by placing an embargo on trade (1493–1496), a risky move given England’s reliance on exports.

Magnus Intercursus (1496)

To end hostilities, Henry signed the Magnus Intercursus (Great Settlement).

• Allowed English merchants to trade freely in Burgundy.

• Removed support for Warbeck.

This restored a crucial economic lifeline while weakening Yorkist threats.

Malus Intercursus (1506)

A later trade treaty, known as the Malus Intercursus, was agreed when Philip of Burgundy was shipwrecked in England.

• It gave extraordinarily favourable trading rights to England.

• However, its terms were never fully implemented after Philip’s death.

Relations with Scotland

Early Tensions

Scotland posed a direct military threat due to its northern border. James IV of Scotland harboured Perkin Warbeck, increasing tensions.

• Warbeck’s invasion attempt in 1496 failed, but highlighted Scotland’s potential danger.

Treaty of Ayton (1497)

Henry secured peace through diplomacy.

• Treaty of Ayton (1497): Established a truce with Scotland.

• It was the first peace treaty with Scotland since 1328.

This agreement laid the foundations for lasting stability, reinforced by the marriage of Henry’s daughter Margaret Tudor to James IV in 1503.

The marriage alliance with Scotland later proved significant, as it established the Tudor claim that would unite the English and Scottish crowns in 1603.

Balancing Diplomacy

Henry VII’s treaties highlight his cautious, pragmatic diplomacy. He:

• Secured dynastic recognition through marriage alliances with Spain and Scotland.

• Protected trade with Burgundy, while limiting Yorkist threats.

• Gained financial rewards and security through France.

• Maintained England’s independence without overextending military resources.

Overview of Key Treaties

• Treaty of Redon (1489): Support for Brittany against France.

• Treaty of Medina del Campo (1489): Anglo-Spanish alliance and dynastic marriage.

• Treaty of Etaples (1492): Peace with France, financial pension, end of pretender support.

• Magnus Intercursus (1496): Free trade with Burgundy.

• Treaty of Ayton (1497): Peace with Scotland, followed by dynastic marriage.

• Malus Intercursus (1506): Short-lived but favourable trading treaty with Burgundy.

These treaties collectively secured England’s borders, reduced dynastic threats, and strengthened Henry’s authority at home and abroad.