U.S. President Donald Trump reacts as he and the President of Poland Karol Nawrocki (not pictured) meet within the Oval Office at the White House in Washington, D.C., U.S., September 3, 2025.
Brian Snyder | Reuters
The U.S. administration struck out at Norway’s $2 trillion wealth fund, saying it was “very troubled” by the current exit from American agency Caterpillar.
In current weeks, the Norwegian sovereign wealth fund — the biggest of its form on this planet — wound down its investments in Israel and introduced plans to sell its holding of American equipment producer Caterpillar, amid issues over hyperlinks to the battle within the Gaza Strip.
“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 U.S. State Department spokesperson mentioned in a Thursday e mail. “We are engaging directly with the Norwegian government on this matter.”
The State Department first spoke to the Financial Times about the fund’s strategy on Wednesday.
Wealth fund ‘not a subject of debate’ at talks
In an emailed assertion on Thursday, Norway’s Finance Minister Jens Stoltenberg careworn that the federal government was not concerned in deciding which corporations had been included within the fund’s portfolio.
More broadly, selections concerning the fund had been divided between the nation’s ministry of finance, its central financial institution and the fund’s personal ethics council, he added.
“The government is not involved in assessing individual companies,” he mentioned. “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.”
Stoltenberg added that he had been a part of a Norwegian delegation concerned in talks with Trump’s financial adviser Kevin Hassett on Tuesday.
“We discussed trade and tariffs, economic sanctions against Russia and support for Ukraine,” he mentioned. “The pension fund was not a topic of discussion.”
Last week, Norges Bank Investment Management (NBIM) — which manages the fund on behalf of the Norwegian inhabitants — said it would exit its stake in U.S. equipment maker Caterpillar and 5 Israeli banks, citing “unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict.”
At the tip of final yr, the fund held a 1.2% stake in New-York listed caterpillar.
However, the fund’s ethics council had really helpful cashing out of that holding, with NBIM saying at the time that administration believed Caterpillar’s bulldozers had been “being used by Israeli authorities in the widespread unlawful destruction of Palestinian property.”
The State Department’s feedback this week should not the primary time U.S. officers have hit out at NBIM’s funding selections.
In a series of posts on the X social media platform final week, Republican Senator and Trump ally Lindsey Graham labeled the Norwegian wealth fund’s portfolio shuffle as “shortsighted.”
“To Norway’s sovereign wealth fund… Your decision to punish Caterpillar, an American company, because Israel uses their product is beyond offensive,” he wrote.
“Maybe it’s time to put tariffs on countries who refuse to do business with great American companies. Or maybe we shouldn’t give visas to individuals who run organizations that attempt to punish American companies for geopolitical differences.”
The Norwegian fund’s divestment from Caterpillar and the Israeli banks got here shortly after NBIM said it would sell all its investments in Israeli corporations that are not in its fairness benchmark index “as soon as possible.” NBIM additionally introduced its intention to terminate contracts with exterior asset managers in Israel.
NBIM’s deputy CEO Trond Grande informed CNBC after the preliminary announcement that the fund’s holdings of Israeli corporations had come beneath elevated scrutiny over the summer season, because the conflict in the West Bank intensified.
“Due to the conflict and due to opinion here in Norway, I should say there’s a lot of scrutiny around specifically our holdings in Israeli companies,” he mentioned.
“What we’re doing now is really not down-weighing, I wouldn’t put it like that, but we are trying to simplify our portfolio in Israeli equities, because we have ethical guidelines.”
Norway’s sovereign wealth fund, which has a present worth of 20 trillion Norwegian kroner ($1.98 trillion), was invested in 61 Israeli equities at the tip of June.
It now holds simply six Israeli shares, based on its web site.
— CNBC’s Jenni Reid contributed to this text.