US 'very troubled' by Norway wealth fund's divestment from Caterpillar

4/9/2025 16:13

President Donald Trump's administration said on Wednesday it was "very troubled" by the Norwegian sovereign wealth fund's divestment of U.S. construction equipment group Caterpillar, and is engaging with Norway's government on the issue.



Norway's $2 trillion wealth fund, the world's largest, said last week it had divested from Caterpillar on ethics grounds over the use of the company's products by Israeli authorities in Gaza and the Israeli-occupied West Bank.



The fund's ethics watchdog said that in its assessment, Caterpillar's products such as bulldozers were being used by Israeli authorities "to commit extensive and systematic violations of international humanitarian law" such as the "widespread unlawful destruction of Palestinian property".



The watchdog said Caterpillar has "not implemented any measures to prevent such use". Caterpillar has not responded to requests for comment on the move by the fund, which is operated by Norway's central bank.



"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," a U.S. State Department spokesperson said.



Trump ally and Republican U.S. Senator Lindsey Graham has suggested Washington should impose tariffs and visa revocations in retaliation.