- Disruption of trade routes: The war disrupted trade routes between the United States and Europe due to the presence of German U-boats (submarines) that attacked merchant ships. This made shipping goods and raw materials between the two regions more difficult and dangerous, leading to increased shipping costs and delays.
-Economic uncertainty: The outbreak of war created a great deal of economic uncertainty, which led to a decline in demand for American goods in Europe. This was particularly true for luxury goods, as many European countries focused their resources on producing war materials.
-Increased competition: American exporters faced increased competition from other countries, such as Japan, which was able to take advantage of the war to expand its share of the European market.
Positive impact:
- Increased demand for American goods: The war also created some opportunities for American businesses. For example, there was increased demand for American agricultural products, such as wheat, corn, and meat to feed the troops and civilian populations of the warring nations.
- New markets: The war also opened up new markets for American goods in countries that had previously been supplied by European countries. This was particularly true in Latin America and Asia.