Sen. McCormick demands Trump hit back at Norway – Business News
Sen. Dave McCormick (R-Pa.) blasted Norway’s sovereign wealth fund for dumping shares of Caterpillar over its ties to Israel, demanding the Trump administration hit back with tariffs, sanctions and different punishments.
In a fiery letter to Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, the Pennsylvania Republican accused Oslo of waging “economic warfare directed by a foreign government against the US economy.”
Sen. Dave McCormick (R-Pa.) ripped Norway’s sovereign wealth fund for dumping Caterpillar over its ties to Israel. AP
“As the Trump administration continues to take bold action to rebalance global trade, I urge you to also address the disturbing politicization of sovereign wealth fund investment decisions against American companies,” McCormick wrote Thursday.
The missive was despatched shortly after The Post’s Charles Gasparino reported that Norway’s sovereign wealth fund divested from Israel whereas sustaining business ties with serial violators of human rights resembling China, Qatar and Turkey.
News of the letter was reported by Jewish Insider.
The fund at the middle of the battle, Norges Bank Investment Management, manages more than $1.6 trillion, together with almost $1 trillion in US belongings.
Its ethics council voted this spring to dump Caterpillar stock, citing the Israeli army’s use of its bulldozers in Gaza and the West Bank.
“As he said in the letter, Senator McCormick feels strongly that the administration should take action when sovereign wealth funds engage in economic warfare that is driven by political pressure which is anti-American and anti-Israel,” a spokesperson for the senator advised The Post.
“He had a constructive conversation with the Norwegian prime minister, but came away very concerned that this is a prime example of this type of troubling behavior.”
McCormick — a former Bridgewater Associates chief govt who has sparred with Norwegian leaders — warned the choice was half of a bigger anti-Israel agenda.
“I respectfully disagree,” he wrote after Prime Minister Jonas Gahr Støre advised him the transfer was not political.
An Israeli army bulldozer manufactured by Caterpillar is seen demolishing a home within the Palestinian city of Nablus in February 2023. SOPA Images/LightRocket by way of Getty Images
“While I recognize the value of Norges’ investments of nearly $1 trillion of US assets, I have significant concerns that these decisions are entirely political and are driven by an agenda that has consistently targeted American companies and is explicitly anti-Israel.”
He urged the Trump administration to “put all options on the table,” together with tariffs on Norwegian items, blocking Norges’ entry to American financial markets and even visa sanctions on officers concerned.
Sen. Lindsey Graham (R-SC) has already floated related retaliation, blasting Norway’s resolution final week as an assault on America’s closest Middle East ally.
McCormick additionally fired off a separate letter to Norway’s ambassador in Washington, warning that he “remain[s] extremely concerned” by what he known as politically pushed divestment.
“I brought this issue up directly with Prime Minister Støre and was unsatisfied with his response,” McCormick wrote.
The episode has thrown Caterpillar, a perennial goal of the Boycott, Divestment and Sanctions motion, back into the middle of the US-Israel political firestorm.
The fund at the middle of the battle, Norges Bank Investment Management, manages more than $1.6 trillion, together with almost $1 trillion in US belongings. Bloomberg by way of Getty Images
The Illinois-based construction giant has long confronted criticism for its bulldozers’ function in Israeli army operations, however American lawmakers see the newest divestment push as a harmful escalation by a overseas authorities.
McCormick harassed that Caterpillar isn’t the primary sufferer. Norges has additionally pulled out of American fossil fuel and protection corporations, even ones whose weapons Norway itself purchases.
He warned the administration to “look more broadly at instances of sovereign wealth funds adopting restrictive, unfair trade policies against US companies as a result of political pressure.”
Bridgewater, the Connecticut-based hedge fund McCormick ran from 2020 to 2022, manages slices of Norges’ huge portfolio. Its chief investment officer Greg Jensen even addressed Norges’ 2024 investment convention.
Start your day with all you need to know
Morning Report delivers the newest information, videos, images and more.
Thanks for signing up!
That tie hasn’t stopped McCormick from torching his onetime associate. He stated he confronted Norwegian leaders instantly final month in Oslo, urgent them to reverse the Caterpillar divestment.
Norges’ clout looms giant internationally’s financial markets. Richard Goldberg, a senior advisor at the Foundation for Defense of Democracies and former White House official, advised Jewish Insider the fund units the tone for world capital flows.
“Norges is such a large player … It moves capital markets with its decisions,” Goldberg stated.
“It causes other sovereign wealth funds, pension funds to follow. It causes institutional investors to follow. It really does set trends in investment and an inversion of capital can have impacts.”
Goldberg stated Norway’s upcoming elections may turbocharge divestment strain, with left-wing events vowing to blacklist more American corporations tied to Israel.
Sen. Lindsey Graham (R-SC) has already floated related retaliation, blasting Norway’s resolution final week as an assault on America’s closest Middle East ally. REUTERS
“The danger of weaponized sovereign wealth funds … is an ongoing and growing issue,” he warned.
“This is a long-standing attack on US interests, attack on American energy companies, an attack on American defense companies and now an attack on any company that does business with the State of Israel — all of this to the detriment of our national economic security, all of it politicized by the Norwegians by a state-run, state-controlled entity.”
If Washington shrugs off the problem, Goldberg added, “we’re literally allowing supposed democratic allies for whom we provide a blanket of freedom the ability to conduct economic warfare against America and American interests.”
The Commerce Department has not stated whether or not it’ll reply to the Norwegian fund’s Caterpillar resolution.
The Post has sought remark from McCormick, Graham, Greer, Lutnick and the Norwegian authorities.
