Norway's Wealth Fund Sparks U.S. Tensions Over Caterpillar Divestment
Norway's $2 trillion wealth fund divested from U.S. construction equipment group Caterpillar over ethical concerns. The decision troubled the Trump administration, which is engaging directly with Norway's government. The controversy stems from the use of Caterpillar’s products by Israeli authorities, raising broader geopolitical tensions.
The Trump administration has expressed significant concerns over the recent decision by Norway's $2 trillion wealth fund to divest from the U.S. construction giant, Caterpillar. The administration is now directly engaging with Norwegian officials to address the issue.
The divestment was triggered by ethical concerns related to the use of Caterpillar's machinery by Israeli forces in Gaza and the West Bank. Norway's fund claims these machines contribute to violations of international humanitarian law, pointing to extensive property destruction in Palestinian territories.
In light of the decision, some U.S. officials, including Senator Lindsey Graham, have suggested imposing tariffs against Norway. The situation is further exacerbated by ongoing tensions in the region, which were intensified by an assault on October 7, 2023, resulting in significant casualties and international condemnation.
(With inputs from agencies.)
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