US ‘Troubled’ Over Norway’s Boycott of Caterpillar Allegedly Tied to Gaza War
The Trump administration criticized Norway’s sovereign wealth fund after it announced the sale of its stake in Caterpillar, citing concerns over the company’s equipment being used by Israel.
The $2 trillion fund disclosed last week that it divested from Caterpillar following recommendations from its ethics adviser, which alleged that the firm’s bulldozers were involved in “systematic violations of international humanitarian law” by demolishing Palestinian property. The move marked the first time the fund dropped a non-Israeli company over alleged actions tied to Israel.
The Norwegian sovereign wealth fund is the largest of its kind in the world, managing more than $2 trillion in assets. On average, it holds about 1.5% of every listed company globally.
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Washington pushed back strongly. “We are very troubled by the Norwegian sovereign wealth fund’s decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government,” the State Department said Wednesday, confirming it had protested directly to Oslo.
Republican Senator Lindsey Graham, a close ally of President Donald Trump, warned of retaliatory measures. “If you cannot do business with Caterpillar because Israel uses their products, maybe it’s time you’re made aware that doing business or visiting America is a privilege, not a right,” he said, threatening tariffs and visa restrictions against Norwegian officials.
The divestment comes as Norway heads into parliamentary elections, with smaller parties demanding that the fund exit all Israeli holdings. Fund chief Nicolai Tangen has resisted, though nearly half of its Israeli portfolio has already been sold.
Norwegian Prime Minister Jonas Gahr Støre stressed that the fund operates independently, telling Graham by text that decisions are made by the central bank, not the government. Finance Minister Jens Stoltenberg echoed that position, saying, “It is not a political decision.”
