White House Weighs Pushing Out Commerce Secretary Lutnick Amid Nvidia Spy Scandal, Sources Say
White House Weighs Pushing Out Commerce Secretary Lutnick Amid Nvidia Spy Scandal, Sources Say
Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be pushed out of his job, as the fallout from the spy scandal surrounding Nvidia’s now-former chief executive Jensen Huang spreads through the Trump administration, Reuters reported on Thursday.
Two people familiar with the situation told Reuters that senior officials are weighing Lutnick’s removal. No decision has been made, and it is not clear who is driving the discussions. The White House and the Commerce Department did not immediately respond to requests for comment after the report was published.
Earlier on Thursday, a White House official said President Donald Trump “maintains complete confidence in the secretary and his ability to carry out the position.”
Why Lutnick Is Under Pressure
A growing number of lawmakers in both parties have criticized Lutnick for the administration’s refusal to add dozens of Chinese companies to a key U.S. trade blacklist, and over whether the government has properly overseen Nvidia’s exports of advanced artificial intelligence chips to China.
The criticism predates Huang’s resignation on Thursday. Huang stepped down as chief executive of the world’s most valuable chipmaker after reports of an affair with Alice Huang, a businesswoman U.S. authorities suspect of spying for Beijing. But the charge that Lutnick has not done enough to restrict AI chip shipments to China has gathered force as the fallout from Huang’s actions grows.
In June, Reuters reported that the Trump administration had held off adding China’s AI startup DeepSeek, memory chipmaker CXMT and more than 100 other companies flagged as national security risks to the trade blacklist. The United States has not posted any additions to that list since October 2025 — the longest stretch between new postings in more than a decade. Reuters earlier reported that the Commerce Department held off for fear of escalating tensions between the United States and China.
Lawmakers Demand Answers
Senator Elizabeth Warren, a Massachusetts Democrat who will chair 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.
“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,” Warren said.
The senators cited reports of Huang’s personal relationship with Alice Huang, an executive of Megaspeed, a Singapore-based company that has purchased more than $4.8 billion in advanced Nvidia AI chips since June 2024.
Separately, Senator Ron Wyden of Oregon and Representative Richard Neal of Massachusetts, the top Democrats on the Senate Finance Committee and House Ways and Means Committee, wrote to Lutnick on Thursday saying they were investigating the administration’s approval of sales of Nvidia’s advanced AI chips to Chinese companies “with concerning links to the Chinese government, military, and sanctioned entities.” They also questioned Trump’s decision to grant Nvidia permission to sell its advanced H200 AI chips to China in December 2025 in exchange for a cut of the export sales through a Commerce Department action, which they called “an unconstitutional export tax.”
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Republican Senator John Kennedy, asked on CNN whether Lutnick should lose his job, said: “I don’t know yet.” He and others have urged Lutnick to quickly answer questions in public and noted he will be called to appear before Congress. “This is as serious as an aneurism,” Kennedy said.
Not all Republicans have turned on Lutnick. Representative Brian Mast of Florida said Congress needs to investigate the Commerce Department’s role in how it approves chip exports, while adding that he has confidence in Lutnick. The Republican chair of the Senate Intelligence Committee, Senator Tom Cotton of Arkansas, urged Lutnick on Thursday to bar CXMT from the U.S. market and deny it access to American technologies.
A Longtime Trump Ally
Lutnick, a Wall Street veteran who served as co-chair of Trump’s transition team, has been friends with the president for three decades and appeared as a guest in 2008 on “The Apprentice,” the reality television show Trump hosted.
The Wall Street Journal reported that several of the president’s senior advisers have started attributing responsibility for the Nvidia controversy to Lutnick, a sign that the blame inside the administration is shifting toward the Commerce Department.
What Happens Next
Lutnick remains commerce secretary for now, with the president’s stated confidence behind him and senior White House officials discussing his future behind closed doors. Congress expects the Nvidia export records to be preserved by November 17, and the FBI investigation and the Nvidia board’s inquiry into Huang continue.
Nvidia’s board is searching for a permanent chief executive after naming chief financial officer Colette Kress as interim chief. The company reports quarterly earnings on November 17, and Huang is due to brief a House committee on November 18.
Frequently Asked Questions
Is Howard Lutnick being fired as commerce secretary?
No decision has been made. Senior White House officials are discussing whether he should be pushed out, Reuters reported, while a White House official said Trump “maintains complete confidence” in him.
Why is Lutnick facing criticism over Nvidia?
Lawmakers say the Commerce Department has not added dozens of Chinese companies to a key trade blacklist and has not done enough to stop advanced Nvidia AI chips from reaching China. The U.S. has not added a company to the list since October 2025.
What is the Nvidia scandal about?
Nvidia chief executive Jensen Huang resigned on November 12 after reports of an affair with Alice Huang, whom U.S. authorities suspect of spying for Beijing. She is an executive of Megaspeed, a Singapore firm that has bought more than $4.8 billion in Nvidia AI chips since June 2024.
What happens next?
Congress has demanded the preservation of Nvidia export records by November 17, Lutnick is expected to be called to testify, and Nvidia reports earnings on November 17.
Sources: Reuters; The Wall Street Journal (via The Strategist); Virginia Business.
