U.S. 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 (NYSE:CAT).
In a social media post Thursday, the South Carolina Republican suggested the U.S. impose further tariffs on Norwegian goods and even restrict visas for executives tied to the $2 trillion wealth fund and “other organizations that attempt to punish American companies for geopolitical differences.”
Norway’s fund announced this week it was excluding Caterpillar (NYSE:CAT) from its portfolio, citing the use of the company’s bulldozers in demolitions of Palestinian property in Gaza and the West Bank. As of June 30, the fund’s stake in the Texas-based machinery giant was valued at about $2.1 billion.
Washington already has a 15% tariff in place on imports from Norway while trade talks continue.
Trump has a history of reacting when congressional allies pressure U.S. companies or foreign governments. For example, he publicly called for Intel (INTC) Chief Executive Lip-Bu Tan to resign after Senator Tom Cotton raised concerns about Tan’s China-linked investments. Trump later praised Tan after Intel (INTC) agreed to provide the U.S. with an ownership stake.
Norway’s sovereign wealth fund, managed by Norges Bank Investment Management, follows ethical guidelines set by parliament, with recommendations from an independent ethics council. Its exclusions range from companies tied to land mines to those involved in climate risks.
As of June 30, U.S. equities and bonds made up more than half of the fund’s portfolio, Bloomberg News reported.