Norway's sovereign wealth fund divests from Caterpillar, sparking US Senator Lindsey Graham's call for tariffs.

US Senator Lindsey Graham calls for new tariffs on Norway after its sovereign wealth fund divests from Caterpillar. Graham, a close ally of President Donald Trump, suggests trade penalties against Norway.

US Senator Lindsey Graham, a close ally of President Donald Trump, has called for new trade penalties against Norway following its sovereign wealth fund's decision to divest from Caterpillar Inc. [1]. The South Carolina Republican suggested imposing further tariffs on Norwegian goods and even restricting visas for executives tied to the $2 trillion wealth fund and "other organizations that attempt to punish American companies for geopolitical differences" [2].

The decision by Norway's sovereign wealth fund, managed by Norges Bank Investment Management, to exclude Caterpillar from its portfolio was based on the use of the company's bulldozers in demolitions of Palestinian property in Gaza and the West Bank [3]. As of June 30, the fund's stake in the Texas-based machinery giant was valued at about $2.1 billion [1].

Graham's call for action follows a pattern of Trump reacting to pressures from congressional allies. In the past, Trump has publicly called for Intel Corp. Chief Executive Lip-Bu Tan to resign after Senator Tom Cotton raised concerns about Tan's China-linked investments [1]. Trump later praised Tan after Intel agreed to provide the U.S. with an ownership stake [1].

Norway's sovereign wealth fund follows ethical guidelines set by the Norwegian parliament, with recommendations from an independent ethics council. Its exclusions range from companies tied to land mines to those involved in climate risks [3]. As of June 30, U.S. equities and bonds made up more than half of the fund's portfolio [1].

The U.S. already has a 15% tariff in place on imports from Norway while trade talks continue [1]. Graham's proposal, if implemented, would further escalate trade tensions between the two countries.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-28/trump-ally-floats-tariffs-on-norway-over-caterpillar-divestment
[2] https://www.investing.com/news/stock-market-news/norways-sovereignwealth-fund-divests-from-caterpillar-and-five-israeli-banks-93CH-4210402
[3] https://seekingalpha.com/news/4490158-sen-graham-urges-tariffs-on-norway-after-wealth-fund-drops-caterpillar