how did trade with native populations contribute to political instability in the american colonies? european goods helped reverse the american indian population decline, leading to increased conflict over land claims for farming or hunting. frustration with the intentional trade of inferior goods led many american indians to attempt to drive europeans out of their settlements. increasing demand for european manufactured goods and restrictive british trade policies combined to create unrest among both white and american indian settlers. american indians armed with european guns used them to defend their territory against frontier settlers and their livestock, increasing demand for frontier defense policy.