Senator McCormick Calls for Action After Norway Wealth Fund Divestment

Senator Dave McCormick has urged the White House to take decisive measures in response to the Norwegian sovereign wealth fund‘s recent divestment from Caterpillar Inc.. This decision has drawn the ire of the Pennsylvania Republican, who is aligned with former President Donald Trump. The senator’s call for action includes the possibility of imposing tariffs and restricting Norway’s access to U.S. markets.

In a letter sent on September 28, 2023, to Commerce Secretary Howard Lutnick and Trade Ambassador Jamieson Greer, McCormick emphasized the need for the administration to consider “all options on the table” when addressing the situation. He described the divestment as “a form of economic warfare directed by a foreign government against the U.S. economy” that has largely gone unaddressed in prior trade negotiations.

Senator McCormick revealed that he recently visited Norway, where he confronted Prime Minister Jonas Gahr Store about the divestment. The senator expressed disagreement with Store’s assertion that the decision was not politically motivated. The Norwegian wealth fund, valued at around $2 trillion, divested from Caterpillar due to the company’s equipment being used in controversial demolitions of Palestinian property in Gaza and the West Bank. As of June 30, 2023, the fund held approximately $2.1 billion in shares of the heavy-equipment manufacturer.

Support for McCormick’s stance comes from fellow Republican Senator Lindsey Graham of South Carolina, who initially suggested retaliatory actions against Norway in a social media post last week. Graham later indicated that he had shared information regarding the wealth fund’s decision with the White House. “I think they were as stunned as I was,” Graham commented in a recent interview, confirming his intention to pursue restrictions on visas for individuals involved in the fund’s decision-making processes.

This situation highlights the complex interplay between international investment and political sentiment, particularly in relation to U.S.-Norwegian relations. As these discussions unfold, the potential economic implications for both nations remain significant.