As a Jewish and openly gay artist, Cagli became the target of virulent attacks, especially after Italy promulgated its racial laws in 1938. In response to these hostile conditions, Cagli chose to leave his homeland and seek refuge in the United States. In America, he became an influential figure within the New York émigré artistic scene. He found camaraderie among the Neo-romantic milieu centered around the Julian Levy Gallery and the Wadsworth Atheneum. Cagli actively participated in the environment of anti-Breton surrealists of View magazine and became a part of a foundational moment in gay culture in New York, collaborating with other artists working for the Ballet Society and Harper's Bazaar, and exhibiting at Alexander Iolas's gallery. Throughout his ten-year stay in America, Cagli continued to produce and exhibit drawings, a medium that allowed him to interrogate and critique fascist rhetoric.

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