1938: Japan controls Chinese coastal cities (where China traded with U. S.). Threat: The U. S. Military was targeted before, now impacting US trade. U. S. Action: F. D.R. Protests action. Extends $25 million in aide to China. How should the US respond if Japan continues to impact US trade in China? Explain.

In this case, the U.S. should continue pressuring Japan. The U.S. could impose economic sanctions on Japan, for example, restricting Japanese imports, or even halting all trade.

The U.S. could also break all diplomatic relations with Japan, meaning that not only economic, but also political relations between the two countries would stop.

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