Graham Threatens Tariffs, Travel Sanctions On Norway Over Boycott Of IDF, Caterpillar

Senator Lindsey Graham has blasted and threatened Norway twice in the last 24 hours, soon after the Scandinavian country’s $2 trillion wealth fund – which springs largely from energy resources - announced it is divesting from Caterpillar over concerns the Israeli military has been using its bulldozers to violate human rights in Gaza and against Palestinians.

Norway’s wealth fund held a 1.17% stake in the Texas-headquartered company, which was valued at $2.1 billion as of June 30. Graham has put Norway on notice: “To those who run Norway’s sovereign wealth fund: if you cannot do business with Caterpillar because Israel uses their products, maybe it’s time you’re made aware that doing business or visiting America is a privilege, not a right,” the US rep stated Thursday on X.

Graham continued with his warning: “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,” he said, threatening to back new travel restrictions on Norwegians. “I would urge you to reconsider your shortsighted decision.”

President Trump is likely to be open to putting such pressure on Norway, given the Caterpillar boycott action could also gain steam among other countries, given Oslo’s example.

While Caterpillar’s products are classified as “construction” equipment, the IDF regularly uses massive, armored Caterpillar D-9 bulldozers to destroy homes and other civilian infrastructure - not only in Gaza, but the occupied West Bank as well. For example, Palestinian roads have been routinely destroyed by such equipment.

Prior to his Thursday tweet lashing out, Graham had initially reacted by calling it a “BS decision” by Norway which “will not go unanswered”…

To Norway’s sovereign wealth fund –which is the largest in the world: Your decision to punish Caterpillar, an American company, because Israel uses their product is beyond offensive.

Your BS decision will not go unanswered. https://t.co/XQRSYtfMIQ

— Lindsey Graham (@LindseyGrahamSC) August 27, 2025

In Norway, divestment decisions are largely driven by the recommendations of an independent ethics council established by the Finance Ministry. After evaluating Caterpillar, the Council on Ethics reported earlier this week: 

“There is an unacceptable risk that Caterpillar is contributing to serious violation of the rights of individuals in situations of war or conflict… Bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property...There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law. The company has also not implemented any measures to prevent such use.”

Caterpillar has long been one of the principal targets of the Boycott, Divestment and Sanctions (BDS) campaign, which – echoing the 1980s divestment campaign against South African apartheid – attempts to use economic pressure on Israel to advance the Palestinian cause. In an infamous 2003 incident, an IDF soldier used a Caterpillar D-9 to fatally crush 23-year-old American activist Rachel Corrie as she tried to prevent the IDF from destroying homes in Rafah, Gaza.  

Again, Graham’s leading the charge against Norway to pressure its wealth fund to reverse its decisions is likely to get noticed by Trump, and will likely be framed as an assault on ‘America First’. It will be interesting to see if there’s any attempt to take real action in Congress, or by the White House.