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

Detailed summary

Criticism of Lutnick's actions predates Nvidia CEO Jensen Huang’s Thursday resignation

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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…

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