Senior officials inside the White House are in active discussions about whether Commerce Secretary Howard Lutnick should be asked to leave his position, two people familiar with the matter said on Thursday. The deliberations come as pressure is rising on Lutnick following a spy-related scandal centered on Nvidia's now former CEO Jensen Huang.
Lawmakers have faulted Lutnick over two related concerns: the administration's refusal to add dozens of Chinese companies to a key U.S. trade blacklist, and questions about whether the government properly monitored Nvidia's exports to China. Those criticisms were present before the announcement on Thursday that Nvidia's CEO would step down. Huang said he would resign after revelations of an affair with Alice Huang, whom U.S. authorities suspect of spying for Beijing.
The debate inside the White House reflects how the controversy surrounding the Nvidia chief has amplified scrutiny of broader export control and trade decisions. Critics argue that Lutnick has not done enough to limit shipments of advanced AI chips to China - an argument that has grown louder as the consequences of Jensen Huang's conduct have unfolded.
The White House did not immediately answer requests for comment on Lutnick's potential removal. A White House official responded to the criticism by saying President Donald Trump "maintains complete confidence in the secretary and his ability to carry out the position."
Context and implications
- The internal conversations concern whether Lutnick should be replaced amid mounting congressional and public scrutiny.
- Lawmakers have criticized the Commerce Department's stance on placing Chinese firms on a trade blacklist and its oversight of high-tech exports.
- The resignation announcement by Nvidia's CEO intensified debate over export controls and governmental supervision of chip shipments to China.
What remains uncertain
- It is unclear what, if any, personnel changes will follow from the White House discussions.
- The extent to which the criticism will change Commerce Department policy on blacklisting or export restrictions is not specified.