Republican Senator Lindsey Graham Floats Tariffs on Norway Over Caterpillar Divestment

Senator Lindsey Graham suggests imposing tariffs on Norway in retaliation for the country's sovereign wealth fund divesting from Caterpillar due to the company's involvement in demolishing Palestinian property in Gaza and the West Bank. Graham also proposes halting US visas for leaders of the fund and other organizations that punish American companies for geopolitical differences. This move follows previous calls to action from Trump's allies in Congress.

In a recent move that has sparked international attention, Republican Senator Lindsey Graham has suggested imposing tariffs on Norway as a retaliation for the country's sovereign wealth fund's decision to divest from heavy-equipment maker Caterpillar Inc. The proposal comes on the heels of Norway's $2 trillion sovereign wealth fund removing Caterpillar from its portfolio due to the company's involvement in the demolition of Palestinian properties in Gaza and the West Bank [1].

Senator Graham, a close ally of former U.S. President Donald Trump, floated the idea of tariffs on Norway in a social media post on Thursday. Additionally, he proposed halting U.S. visas for leaders of the sovereign wealth fund and other organizations that "attempt to punish American companies for geopolitical differences." This move follows previous calls to action from Trump's allies in Congress, which have often prompted the former president to take broader executive actions [1].

Norway's sovereign wealth fund, Norges Bank Investment Management, operates under a mandate set by the Norwegian parliament with ethical guidelines on issues ranging from land mines to climate change. The fund held approximately $2.1 billion worth of Caterpillar shares as of June 30. The fund's decision to divest from Caterpillar was based on ethical concerns related to the company's involvement in the Israeli-Palestinian conflict [1].

This is not the first time that Senator Graham has proposed such measures. In the past, similar calls to action from Trump's allies in Congress have led to broader executive actions. For instance, in 2025, Trump called on Intel Corp. chief executive Lip-Bu Tan to step down after Republican Senator Tom Cotton publicly questioned the company’s board over Tan’s investments in Chinese semiconductor companies. Trump later praised Tan when Intel agreed to give the U.S. a stake in the company [1].

The proposed tariffs and visa restrictions are part of a broader geopolitical strategy that has been a hallmark of the Trump administration. The U.S. has long been involved in international disputes over various issues, including trade, immigration, and territorial claims. Norway's decision to divest from Caterpillar has highlighted the potential for such disputes to escalate into economic retaliation.

The Danish government has also expressed concern over the actions of Trump's allies in Greenland, where the U.S. has been advocating for the annexation of the territory. The Danish Foreign Ministry summoned the acting U.S. ambassador to Copenhagen to protest these actions, emphasizing that the U.S. respects the right of the people of Greenland to determine their own future [2].

In response to these escalating tensions, the U.S. State Department emphasized that the U.S. government does not control or direct the actions of private citizens. The administration has stated that it respects the right of the people of Greenland to determine their own future and has outlined a plan for the island to become independent and then enter into a compact of free association with the U.S. [2].

As these geopolitical tensions continue to unfold, investors and financial professionals should closely monitor the potential economic impacts. Tariffs and visa restrictions can have significant effects on international trade and investment, potentially leading to disruptions in supply chains and market dynamics.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-28/trump-ally-floats-tariffs-on-norway-over-caterpillar-divestment
[2] https://nypost.com/2025/08/27/us-news/denmark-summons-top-us-envoy-to-protest-actions-of-trump-allies-in-greenland/