White House Condemns Norway's Divestment from Caterpillar Over Ethical Concerns

2025-09-05 politics

Washington, D.C., Thursday, 4 September 2025.
The U.S. criticized Norway’s sovereign wealth fund for divesting from Caterpillar, citing ethical concerns over its products’ use in Gaza, highlighting tensions over investment practices.

Norwegian Wealth Fund’s Decision Sparks Controversy

The recent decision by Norway’s sovereign wealth fund to divest from Caterpillar Inc. has sparked significant controversy, with the U.S. administration expressing strong opposition. On August 25, 2025, the $2 trillion fund, one of the largest of its kind globally, announced its divestment from Caterpillar, citing ethical concerns over the use of the company’s products in the ongoing Gaza conflict. The fund’s Council on Ethics recommended the divestment, alleging that Caterpillar’s bulldozers were used in the ‘widespread unlawful destruction of Palestinian property’ [1][2][3].

U.S. Reaction and Political Implications

The decision has led to a strong backlash from the U.S. government, with President Donald Trump and various officials voicing their discontent. The U.S. State Department publicly stated its concerns, arguing that the divestment was based on ‘illegitimate claims’ against both Caterpillar and the Israeli government. This sentiment was echoed by Senator Lindsey Graham, who proposed potential retaliatory measures such as tariffs and visa restrictions against Norway [2][4][5].

Norway’s Stance on Ethical Investments

Norway’s decision to divest from Caterpillar is part of a broader ethical investment strategy that has seen the fund reassess its stakes in companies linked to conflicts and human rights violations. According to Norway’s Finance Minister Jens Stoltenberg, the decision was independently made by Norges Bank’s Executive Board, following the framework established by the ethics council. This move is not politically driven but rather a reflection of the fund’s commitment to ethical investment standards [1][3][6].

Impact on U.S.-Norway Relations

The divestment decision has introduced new tensions between the U.S. and Norway, with potential implications for future diplomatic and economic interactions. While the Norwegian government insists the decision is not a reflection of its political stance, U.S. officials have engaged in discussions with Norwegian counterparts to express their concerns. The situation underscores the complexities of ethical investing in a geopolitical context, where nations’ economic interests can clash with human rights advocacy [3][5][7].

Sources

Caterpillar Inc Norway wealth fund