The incident strained diplomatic relations between Washington and Berlin and helped turn public opinion against Germany. On May 7, 1915, a German submarine sank the British ocean liner Lusitania, resulting in the deaths of nearly 1,200 people, including 128 Americans.

banks also provided the warring nations with loans, the bulk of which went to the Allies. Additionally, America was home to a number of immigrants from countries at war with each other and Wilson wanted to avoid this becoming a divisive issue.Īmerican companies, however, continue to ship food, raw materials and munitions to both the Allies and Central Powers, although trade between the Central Powers and the United States was severely curtailed by Britain’s naval blockade of Germany. With no vital interests at stake, many Americans supported this position.

On August 4, as World War I erupted across Europe, President Woodrow Wilson proclaimed America’s neutrality, stating the nation “must be neutral in fact as well as in name during these days that are to try men’s souls.” Russia, France and Great Britain, the major Allied Powers, eventually were joined by Italy, Japan and Portugal, among other nations. Germany and Austria-Hungary later teamed with the Ottoman Empire and Bulgaria and were referred to collectively as the Central Powers. How a Wrong Turn Started World War I Central Powers