World Wars' Impact on U.S.–Europe Trade

World War I (1914–1918)

U.S. exports to Europe plummeted from $2.3B (1914) to $1.2B (1916) due to:

• Shipping-lane disruption (merchant ships sunk or diverted)
• Soaring transport costs (fuel, submarine risk)
• Collapsed European demand (wartime economies)

Offsetting gains came from supplying food and munitions to the Allies.

World War II (1939–1945)

Exports fell even sharper: $1.5B (1939) to $600M (1941). Causes included:

• German blockade of Britain
• Massive shipping losses
• Surge in Allied demand for U.S. food/weapons (partially offsetting decline)

Both wars hurt peacetime trade but accelerated U.S. industrial mobilization and global economic leadership.