Trump team mulling Howard Lutnick’s future as commerce secretary after Nvidia scandal, report says

Trump team mulling Howard Lutnick’s future as commerce secretary after Nvidia scandal, report says Criticism of Lutnick's actions predates Nvidia CEO Jensen Huang’s Thursday resignation - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in Senior White House officials are debating whether Commerce Secretary Howard Lutnick should be removed from office after an espionage scandal involving Nvidia's now-former chief executive Jensen Huang, two sources told Reuters. Lutnick has faced intensifying scrutiny from lawmakers over the Trump administration's reluctance to place dozens of Chinese firms on a US trade blacklist, as well as questions regarding government oversight of Nvidia's exports to China. Concerns regarding Lutnick's conduct surfaced before Huang announced his departure on Thursday. The chief executive of the prominent AI semiconductor manufacturer resigned following reports of an affair with Alice Huang, a figure suspected by US agencies of espionage for Beijing. Criticism of Lutnick's failure to curb AI chip transfers to China has intensified alongside the expanding fallout of Jensen Huang's actions. Neither the White House nor the Commerce Department answered Reuters’ requests for comment on the new claims surrounding Lutnick's position. Earlier Thursday, a White House spokesperson said President Donald Trump "maintains complete confidence in the secretary and his ability to carry out the position." In June, Reuters revealed that the Trump administration refrained from placing Chinese AI startup DeepSeek, memory manufacturer CXMT, and over 100 additional firms flagged as national security risks onto a trade blacklist. No updates have been added to that list since October 2025, marking the longest gap without additions in over a decade. Previous reports indicated the US Commerce Department refrained from listing further Chinese enterprises out of concern over escalating tensions between the United States and China. "Secretary Howard Lutnick and Under Secretary Jeffrey Kessler must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China’s military," said Sen. Elizabeth Warren, a Democrat representing Massachusetts. Warren, who is set to lead the Senate Banking Committee starting in January, and incoming Senate Foreign Relations Committee Chair Chris Coons, a Delaware Democrat, wrote to Lutnick, Secretary of State Marco Rubio and White House chief of staff Stephen Miller, telling the administration to preserve all documents related to Nvidia’s exports of advanced AI chips to China and related national security risks. Nvidia sales questioned The senators cited allegations surrounding Jensen Huang's personal relationship with Alice Huang, an executive at Singapore-based Megaspeed, which has purchased more than $4.8 billion worth of advanced Nvidia AI chips since June 2024. Democrats US Sen. Ron Wyden of Oregon and Rep. Richard Neal of Massachusetts, top figures on the Senate Finance and House Ways and Means committees respectively, sent a letter to Lutnick Thursday detailing their inquiry into approvals allowing Nvidia AI chip sales to Chinese firms "with concerning links to the Chinese government, military, and sanctioned entities." The legislators further challenged Trump's decision authorizing Nvidia to ship advanced H200 AI processors to China in December 2025 in exchange for a portion of export revenues collected via Commerce Department actions, which they described as "an unconstitutional export tax." Jensen Huang consistently advocated for expanding exports to China, resisting sustained pressure from national security hawks in both parties seeking tighter restrictions on Beijing's tech access. Nvidia's statement announcing Jensen Huang's resignation did not address his actions. Florida Republican Rep. Brian Mast argued that Congress needs to scrutinize the Commerce Department's procedure for approving chip sales, though he noted he retains confidence in Lutnick. Louisiana Republican Sen. John Kennedy told Politico that Lutnick needs to address questions regarding the authorization of advanced American semiconductor exports to China. Lutnick, a former Wall Street executive who co-chaired Trump's transition effort, shares a 30-year friendship with Trump and appeared in 2008 as a guest on The Apprentice, the TV reality program hosted by Trump. Axios reported Wednesday that Lutnick stalled measures proposed by Trump to crack down on firms suspected of rerouting Nvidia chips to China. Arkansas US Sen. Tom Cotton, the Republican chair of the Senate Intelligence Committee, urged Lutnick on Thursday to ban CXMT 688825.SS from operating in the US and block its access to American tech. CXMT did not respond to Reuters’ request for comment. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments