US Commerce Secretary Howard Lutnick Under Fire As Nvidia Scandal Fallout Reaches Trump's Cabinet
· Free Press Journal
Commerce Secretary Howard Lutnick is fighting to keep his job as fallout from the Nvidia scandal spreads through President Trump's White House. Senior officials are discussing whether to push him out, over his department's handling of chip exports to China. The turmoil follows Jensen Huang's resignation as Nvidia's chief executive after reports of an affair with a woman US authorities suspect of spying for Beijing. A White House official said Thursday the president retains full confidence in him.
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The Wall Street Journal reported that some of Trump's top advisers have begun shifting blame for the political mess toward Lutnick. People familiar with the discussions told the paper the criticism centres on his efforts to stall restrictions on chip exports, his longstanding relationship with Huang and his existing tensions with other members of the administration.
Jensen Huang Slips To 13th Position On Forbes Rich List, Nvidia Sheds Nearly $500 Billion In A Week Amid Alleged Spy ScandalThe export-control question
Axios reported that Lutnick was sent intelligence about Huang's relationship and repeatedly failed to take export-control action, despite pressure from the wider administration and the president himself. The US has added no companies to a key trade blacklist since October 2025, Reuters reported, the longest gap in more than a decade, and Reuters earlier reported that Commerce held off out of concern about escalating tensions with China. In June, Reuters reported the administration had also held back on blacklisting DeepSeek, memory chipmaker CXMT and more than 100 other firms flagged as security risks.
Pressure from Congress
Criticism has come from both parties. Republican Senator John Kennedy said "I don't know yet" when asked on CNN whether Lutnick should lose his job, and noted that Lutnick will be called to appear before Congress. Democratic Senator Elizabeth Warren demanded that Lutnick and Under Secretary Jeffrey Kessler explain why they have not closed export-control loopholes.
Warren and incoming Senate Foreign Relations chair Chris Coons asked the administration to preserve all documents on Nvidia's chip exports to China. Senator Ron Wyden and Representative Richard Neal said they are investigating approvals of advanced chip sales to Chinese firms with concerning links to Beijing, and called the December 2025 deal letting Nvidia sell H200 chips to China in exchange for a cut of sales "an unconstitutional export tax." Senator Tom Cotton, the Republican chair of the Senate Intelligence Committee, urged Lutnick to bar CXMT from the US market.
Nvidia Employees Demand Jensen Huang's Return As CEO Hours After Resignation Amid Affair AllegationsSupport from Trump's allies
Republican Representative Brian Mast said Congress should investigate Commerce's role in approving chip exports, but added that he has confidence in Lutnick. Axios reported the White House is standing by Lutnick despite a view within the administration that he delayed action. Lutnick, a Wall Street veteran who co-chaired Trump's transition team, has been friends with the president for three decades.
The Megaspeed link
Lawmakers have pointed to reports of Huang's relationship with Alice Huang, an executive at Singapore-based Megaspeed, which has bought more than $4.8 billion in advanced Nvidia chips since June 2024. Business Standard reported that the US attorney general has said the Justice Department has not concluded she was a Chinese spy.
The White House and Commerce Department did not immediately respond to Reuters' requests for comment on Lutnick's future.