Trump's Commerce Chief Howard Lutnick Faces Ouster Calls After Nvidia CEO's Shock Exit
Commerce Secretary Howard Lutnick faces bipartisan calls for investigations into the handling of advanced AI chip exports.
Nov. 13 2026, Published 1:14 p.m. ET
Commerce Secretary Howard Lutnick is facing growing scrutiny over the Trump administration's handling of Nvidia's advanced chip exports to China, following CEO Jensen Huang's sudden resignation.
Senior White House officials are reportedly discussing whether Lutnick should be removed from his position, according to Reuters.
Meanwhile, lawmakers from both parties are demanding answers about the administration's export approvals and its decision to delay adding dozens of Chinese companies to a key U.S. trade blacklist.
The controversy intensified on Thursday, November 12, when Nvidia announced that Huang had resigned as president and CEO, effective immediately.
The departure followed reports of his relationship with Alice Huang, a former executive at Singapore-based data center company Megaspeed, whom U.S. intelligence officials suspect of having ties to China's Ministry of State Security.
The allegations have prompted concerns about potential national security breaches and whether sensitive U.S. technology reached China through the company's business dealings. Nvidia has said it has no reason to believe its corporate secrets or national security were compromised.
Lawmakers Demand Export Records
The White House said President Donald Trump “maintains complete confidence” in Lutnick.
Democratic Sens. Elizabeth Warren of Massachusetts and Chris Coons of Delaware have called on the administration to preserve government records concerning Nvidia's advanced chip exports and potential national security risks.
In a November 11 letter addressed to Lutnick, Secretary of State Marco Rubio and White House Chief of Staff Stephen Miller, the senators requested that officials retain documents and communications related to the company's exports and the reported intelligence operation involving Huang.
Warren also demanded answers from Lutnick and Under Secretary Jeffrey Kessler about the administration's handling of export restrictions.
"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.
Sen. Ron Wyden of Oregon and Rep. Richard Neal of Massachusetts have separately launched an investigation into the administration's approval of advanced Nvidia chip sales to Chinese companies with alleged connections to the Chinese government, military or sanctioned entities.
The lawmakers are also questioning the administration's decision to allow Nvidia to sell its H200 chips to China under an arrangement requiring a 25% tariff payment to the U.S. government.
Wyden and Neal argue that the arrangement raises constitutional concerns because they believe it amounts to an unconstitutional export tax.
Blacklist Delays Draw Criticism
Elizabeth Warren and other lawmakers asked federal agencies to preserve records related to Nvidia’s China exports.
The Commerce Department is also facing questions about its handling of the Entity List, a government blacklist that restricts designated companies' access to American technology.
Reuters reported in June that the administration had delayed adding more than 100 companies, including Chinese artificial intelligence startup DeepSeek and memory chipmaker CXMT, despite an interagency committee having previously approved them as national security risks.
The report raised concerns about the department's reluctance to use a key tool for preventing sensitive American technology from reaching potential adversaries.
Megaspeed has emerged as a central part of the controversy. According to the Senate Banking Committee, the Singapore-based company has purchased more than $4.8 billion in advanced Nvidia AI chips since June 2024.
Axios reported that Lutnick received an intelligence memo in May outlining concerns about Huang's relationship with Alice Huang and potential problems involving Megaspeed.
The New York Times also reported that the Commerce Department's investigation into suspected chip diversion was halted after Nvidia representatives intervened. These allegations have not been independently established.
Republicans Join Calls For Answers
The Commerce Department has not added companies to its Entity List since October 2025.
Republican lawmakers have also raised concerns about the administration's approach to advanced chip exports.
Sen. Tom Cotton, R-Ark., chairman of the Senate Intelligence Committee, and Rep. Bill Huizenga, R-Mich., previously urged Lutnick to strengthen export controls following reports of large-scale chip smuggling.
In a March 20 letter, the lawmakers called for stronger measures to prevent advanced American technology from reaching China through illegal shipments. They also backed additional safeguards to track restricted chips after export.
Other lawmakers have called for greater congressional oversight. Sen. Thom Tillis, R-N.C., said Lutnick and Nvidia should testify before Congress, arguing that officials need an opportunity to address the allegations before lawmakers move forward with oversight hearings.
White House Tensions Surface
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Reports described a White House dispute between Lutnick and Treasury Secretary Scott Bessent over blacklist delays and chip-diversion enforcement.
Reports of disagreements within the administration have added to the pressure on Lutnick.
Axios reported that Treasury Secretary Scott Bessent confronted the Commerce secretary during a White House Situation Room meeting over the department's failure to add Megaspeed to the Entity List.
According to sources familiar with the meeting, Bessent questioned why the company had not been blacklisted despite concerns about its alleged role in diverting American chips to China. Lutnick reportedly responded that he would look into the matter.
Reuters subsequently reported that senior White House officials were discussing whether Lutnick should be pushed out of his position.
However, the administration has continued to publicly defend the Commerce secretary. A White House official said President Donald Trump "maintains complete confidence in the secretary and his ability to carry out the position."
