Key takeaways
- White House officials are reportedly discussing Lutnick’s future
- Jensen Huang’s sudden resignation has drawn further scrutiny
- US lawmakers are seeking testimony from Lutnick and Huang
Senior White House officials are reportedly discussing whether to remove US Commerce Secretary Howard Lutnick amid criticism of the Trump administration’s handling of Nvidia’s advanced AI chip exports to China.
Two people familiar with the situation confirmed to Reuters on Nov. 12 that discussions about Lutnick’s future were underway. The controversy follows concerns about national security, alleged Chinese espionage and enforcement of US technology export restrictions.
Lutnick Accused of Delaying Nvidia Export Restrictions
Lutnick has been accused of resisting efforts to restrict companies suspected of diverting advanced Nvidia chips to China. Axios reported that President Donald Trump approved tougher restrictions on suspected chip diversion on multiple occasions, but that Lutnick allegedly delayed their implementation because of concerns about escalating trade tensions with Beijing.
Megaspeed, a company accused of facilitating access to restricted Nvidia technology, drew significant attention.
Axios also reported that Treasury Secretary Scott Bessent confronted Lutnick over the government’s failure to blacklist Megaspeed. The Commerce Department denied that the reported confrontation took place.
The controversy intensified after revelations involving Nvidia co-founder Jensen Huang and Alice Huang, a woman US authorities suspect has links to Chinese intelligence.
Nvidia CEO’s Resignation Adds to Political Pressure
On Nov. 12, Nvidia confirmed that Jensen Huang had resigned as CEO, president and board member, effective immediately. The company named longtime CFO Colette Kress interim CEO while it searches for a permanent replacement.
(Source: Nvidia)
Huang’s departure added to political scrutiny of Nvidia’s dealings with China and the government’s enforcement of semiconductor export controls.
Senate Banking Committee Chairman Tim Scott subsequently requested testimony from Huang and Lutnick, with hearings proposed for Dec. 3 and Dec. 10, respectively. Senators Elizabeth Warren and Chris Coons also called for government records concerning Nvidia’s exports to China to be preserved.
Will Trump Remove Howard Lutnick?
Despite reports that senior White House officials were considering removing Lutnick, the administration publicly defended the Commerce Secretary. A White House official said President Trump has complete confidence in Lutnick and his ability to perform his duties.
No official decision to remove Lutnick has been announced. However, mounting congressional pressure and calls for tighter restrictions on advanced semiconductor exports could keep Lutnick and Nvidia at the center of Washington’s national security debate.
