The passage of the first Neutrality Act marked a significant shift in U.S. policy during the interwar period. As tensions rose in Europe with the growing ambitions of Nazi Germany under Adolf Hitler and militaristic Japan, the American public and political leaders were increasingly wary of becoming embroiled in another conflict. Prominent among these concerns was the memory of World War I and its heavy toll on American lives and resources.

The Neutrality Act of 1935 specifically aimed to restrict trade and financial engagements with belligerent nations. The legislation prohibited the export of arms, ammunition, and implements of war to warring countries and also forbade U.S. citizens from traveling on ships owned by nations at war. These measures were indicative of a broader sentiment of isolationism, which permeated American society during this era, coupled with a fear of the repercussions of foreign entanglements.

This act was not a one-off response; rather, it was the first in a series of Neutrality Acts that would later be enacted throughout the 1930s. Each subsequent act was a reflection of the changing geopolitical landscape and the increasing threats posed by fascist regimes in Europe and Asia. Ultimately, while the intention behind such legislation was to maintain peace, it also had the paradoxical effect of limiting the ability of the United States to respond to aggressive actions by other nations, setting the stage for a larger conflict as the world approached World War II.