Trump administration ‘troubled’ by Norway wealth fund’s divestment from Caterpillar

An armoured Caterpillar bulldozer stands on a street during an Israeli raid at Tulkarm, in the Israeli-occupied West Bank, 18 February, 2024. (Image: Reuters/Raneen Sawafta/File Photo)

News emerged last week that the $2 trillion wealth fund had divested from Cat on ethical grounds over the use of the company’s products by Israeli authorities in Gaza and the Israeli-occupied West Bank.

“We are very troubled by the Norwegian sovereign wealth fund’s decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government,” a US State Department spokesperson told Reuters.

“We are engaging directly with the Norwegian government on this matter.”

Trump ally and Republican U.S. Senator Lindsey Graham has suggested Washington should impose tariffs and visa revocations in retaliation.

In Norway, Finance Minister Jens Stoltenberg said, “The government is not involved in assessing individual companies.”

“The decision to exclude companies is an independent decision made by the Executive Board of Norges Bank, in accordance with the established framework. It is not a political decision.”

The Norwegian fund said that the decision was based on recommendations from its Council on Ethics of 25 June and 2 July 2025. It related to the company’s bulldozers allegedly being used by the IDF (Israel Defense Force) in actions against civilians.

Caterpillar has not commented on the matter but according to Norges Bank, its Council on Ethics held two meetings with representatives of Caterpillar’s management. During a teleconference on 19 November 2024, Caterpillar explained that the company had never sold the bulldozers in question directly to the IDF, but that the equipment was sold to the US authorities via the FMS (Foreign Military Sales) programme.

The company confirmed that it was aware that the vehicles had been transferred to Israel and that, with the possible exception of a couple of vehicles previously delivered to Egypt, Israel was the only nation to receive D9 bulldozers supplied via the FMS programme. The company also underlined that these bulldozers were supplied by Caterpillar as civilian heavy machinery and that they were modified for military purposes by other parties.

The Council subsequently inquired about the measures Caterpillar was taking to ensure that its products were not being used in violation of international humanitarian law or human rights. The company responded that it was difficult to maintain oversight of how its equipment was used once delivered.