A massive Norwegian fund divested from Caterpillar, enraging the Trump administration.
In a stunning escalation of international tensions, the Trump administration has launched a furious diplomatic assault against Norway after its colossal $2 trillion sovereign wealth fund—the world’s largest—divested from US construction titan Caterpillar. The reason? A shocking ethics report accusing Caterpillar of enabling “extensive and systematic violations of international humanitarian law” with its bulldozers in Gaza and Judea and Samaria.
The bombshell decision, based on the fund’s ethics watchdog, has been met with swift and fierce condemnation from Washington. A US State Department spokesperson, in an uncharacteristically sharp rebuke, declared the Trump administration is “very troubled” by the move, branding the claims against both Caterpillar and the Israeli government as “illegitimate.” The US is now “engaging directly with the Norwegian government on this matter.”
The backlash isn’t just diplomatic. Republican Senator Lindsey Graham, a key Trump confidant and a vocal pro-Israel advocate, has hinted at a terrifying prospect: retaliatory measures that could include crippling tariffs and even visa restrictions against Norway. This threat signals the seriousness with which the Trump administration views this move as an attack on its ally, Israel.
The divestment from Caterpillar is the latest salvo in a growing campaign against Israel by the Norwegian fund. Just last month, the fund announced it would divest from six other companies and had previously sold stakes in 11 Israeli firms. The fund’s ethics council has been scrutinizing Israeli banks for their role in underwriting West Bank settlements and has already blacklisted 11 companies for their alleged role in assisting Israel’s “occupation,” including Israeli telecommunications company Bezeq and petrol station chain Paz.
The divestment campaign is gaining a head of steam in Norway, fueled by a number of political parties ahead of the September 8th elections who are openly pushing for a full-blown boycott of all Israeli companies. The rising tide of anti-Israel sentiment is a stark reminder of the global political forces at play, threatening to upend the economic and diplomatic relationship between the US and its allies.
