The State Department is in discussions with the Norwegian government over the decision by Norges Bank Investment Management, the country’s sovereign wealth fund, to sell its stake in U.S. machinery firm Caterpillar, citing concerns about the Israeli military’s use of the company’s bulldozers to destroy Palestinian property in the West Bank and Gaza.

“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 State Department spokesperson told Jewish Insider. “We are engaging directly with the Norwegian government on this matter.”

Sen. Lindsey Graham (R-SC), a close ally of the White House, recently floated the idea of retaliatory tariffs or visa restrictions in response to the move.

Sen. Lindsey Graham (R-SC) on Thursday floated the possibility of punitive tariffs and visa restrictions in response to Norges Bank Investment Management’s — the Norwegian sovereign wealth fund — decision to sell its stake in the American machinery company Caterpillar in response to the Israeli military’s use of its products.

“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,” Graham said on X.

Caterpillar is a frequent target of Boycott, Divestment and Sanctions campaigns.

“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 South Carolina senator continued. “I would urge you to reconsider your shortsighted decision.”

He had said a day prior that the decision by the Norwegian fund — the largest in the world — is “beyond offensive’ and “will not go unanswered.”