While this little piece of lore could potentially change many things about Esroniet, I don't think we should really take too much into consideration in the rp. At most maybe a reduction of those spices and other exports if they're being isolationist, which is doubtful. I can't see too much in the way of conflict with anything on Tamriel. They might be out fighting the other islands right now for supremacy?
The biggest thing that brings up now is the size of the island. If it's that major of an exporter to Tamriel, then the damn thing might be of moderate size.