Sen. McCormick Criticizes Norwegian Fund for Selling Caterpillar Shares
Senator Dave McCormick (R-PA) has taken a strong stance against the Norwegian sovereign wealth fund for divesting from Caterpillar due to the company’s connections with Israel. He is urging the Trump administration to respond with tariffs, sanctions, and other measures.
Republicans from Pennsylvania have accused the Norwegian government of waging what they call “an economic war against the US.” This claim was voiced in a pointed letter sent to Commerce Secretary Howard Lutnic and US trade representative Jamieson Greer.
In his letter, McCormick emphasized the need to tackle the troubling politicization in investment decisions made by sovereign funds when it comes to American businesses. He sent this missive shortly after a report indicated that the Norwegian fund had sold its shares in the company while still engaging with nations like China, Qatar, and Turkey, known for human rights violations.
The fund in question, Norges Bank Investment Management, oversees more than $1.6 trillion in assets, with over $1 trillion tied up in US ventures. Earlier this spring, its Ethics Council voted to offload Caterpillar stock, citing the company’s use of bulldozers in Gaza and along the Jordan River.
A spokesman for McCormick said that the senator believes the administration should act decisively when sovereign funds engage in economic actions influenced by anti-American and anti-Israel pressures. McCormick had a conversation with the Norwegian Prime Minister, which left him concerned about the political motives behind such actions.
As the former CEO of Bridgewater Associates, McCormick has been vocal about these issues, suggesting that the decision appears to be part of a wider anti-Israel agenda. He expressed disagreement after Prime Minister Jonas Gar Steel stated the move was apolitical.
McCormick acknowledged the significant investments that Norges has in US assets but argued that the decisions being made seem politically motivated and targeted at American businesses, hurting their reputation globally.
He urged the Trump administration to consider all possible responses, including tariffs on Norwegian products and restrictions on access to American financial markets. Senator Lindsey Graham (R-SC) has also suggested similar retaliatory actions, deeming the Norwegian fund’s divestment an affront to America’s key Middle Eastern allies.
Furthermore, McCormick has reached out to the Norwegian ambassador in Washington to express his dissatisfaction with the politically charged nature of the sale. He mentioned that he had raised the issue directly with Norwegian leaders but was not content with their responses.
This incident has put Caterpillar back in the spotlight, especially since the company has faced boycotts and sanctions previously. Critics have long pointed to the role of its products in military operations in Israel, and lawmakers see this recent divestment as a serious escalation driven by foreign entities.
McCormick pointed out that Caterpillar isn’t the sole victim. The Norwegian fund has also divested from US fossil fuel and defense companies, demonstrating a broader trend influenced by political agendas.
In his view, this indicates a larger issue of sovereign funds employing restrictive practices against US firms based on political pressure. McCormick, who managed parts of Norges’s portfolio from 2020 to 2022, remains critical of their recent actions.
Experts like Richard Goldberg, a senior adviser at the Democracy Foundation, noted the immense influence of Norges across global financial markets. He remarked that these kinds of decisions could shape investment trends and impact institutional investors worldwide.
Concerns about the weaponization of sovereign wealth funds are growing. Goldberg emphasized that these actions could threaten US economic interests, particularly in sectors tied to energy and defense, while undermining national economic security.
Despite the seriousness of the allegations, the Commerce Department has not yet indicated if it will take action in response to the Norwegian fund’s decision regarding Caterpillar. Comments have been sought from multiple parties, including those in the Norwegian government.
