Senior White House officials are reportedly weighing whether to remove Commerce Secretary Howard Lutnick from the Trump administration. This consideration comes amid escalating criticism regarding his management of advanced export controls and the significant scandal involving Nvidia's now-former chief executive, Jensen Huang.
The scrutiny intensified following Huang's abrupt resignation on Thursday. Reports emerged of his alleged affair with Alice Huang, a Singapore-based businesswoman whom US authorities suspect of spying for Beijing. Central to the controversy are questions about the Commerce Department's efforts to prevent advanced Nvidia AI chips from reaching Chinese entities. Specifically, concerns have been raised about Megaspeed, a company accused of illegally diverting US technology to China, which has reportedly purchased over $4.8 billion in Nvidia AI chips since June 2024.
Export Policy Under Fire
The ongoing controversy has drawn bipartisan condemnation from lawmakers. Critics point to the administration's failure to add any companies to its Entity List since October 2025, marking the longest such gap in over a decade. This inaction allowed Chinese AI startup DeepSeek, memory chipmaker CXMT, and more than 100 other companies to avoid blacklisting, reportedly due to concerns about escalating US-Beijing tensions.
Treasury Secretary Scott Bessent reportedly confronted Secretary Lutnick during a White House Situation Room meeting over the omission of Megaspeed from the blacklist. According to Axios, Lutnick initially struggled to provide an explanation before stating he would "look into it." However, the Commerce Department has since denied that this confrontation occurred.
Congressional Pressure Builds
Several prominent senators have voiced their concerns and demanded accountability. Democratic Senator Elizabeth Warren and incoming Senate Foreign Relations Committee chairman Chris Coons have formally requested that Lutnick, Secretary of State Marco Rubio, and White House chief of staff Stephen Miller preserve all documents related to Nvidia's chip exports and associated national security risks.
Senators Ron Wyden and Representative Richard Neal have also questioned the administration's approval of advanced Nvidia chip sales to Chinese companies. This includes President Trump's controversial December 2025 decision to permit sales of H200 chips to China, purportedly in exchange for a share of the export revenues.
Republican Senator John Kennedy stated he was unsure if Lutnick should lose his job but insisted the Secretary must answer congressional questions. Separately, Senator Tom Cotton urged Lutnick to ban Chinese chipmaker CXMT from the US market entirely. Despite the mounting pressure, a White House official had stated earlier on Thursday that President Trump "maintains complete confidence in the secretary and his ability to carry out the position."