1941 USA imposes total trade embargo, including oil, on Japan thereby threatening to stifle its military machine. Japan responds in December by launching attack on US fleet at Pearl Harbor and invading US, British and Dutch possessions in the Pacific. Japan loses decisive naval battle of Midway. Thereafter the tide of war turns as Japanese forces are driven back toward their home islands. Huge US bombing campaign culminates in atomic bombing of Hiroshima and Nagasaki.
Soviet Union declares war on Japan.
Emperor Hirohito surrenders, gives up divine status. Japan placed under US military government with Gen. MacArthur installed as supreme commander of Allied Powers in Japan. 1950 Korean War. US army contracts lead to quick expansion of Japanese economy. 1952 Treaty of San Francisco.