Senior White House officials are discussing whether US Commerce Secretary Howard Lutnick should be removed amid growing scrutiny of the Trump administration’s handling of Nvidia chip exports to China, according to Reuters. The White House says President Donald Trump retains complete confidence in him.
Two people familiar with the discussions told Reuters on Thursday 12 November 2026 that Lutnick’s future was being considered. No dismissal or resignation had been formally announced at the time of this report. The existence of internal discussions is not evidence that Trump has made a decision to remove him.
Why is Lutnick under pressure?
The dispute centres on whether the Department of Commerce moved quickly enough to restrict companies suspected of diverting advanced US-made Nvidia artificial intelligence chips to China. The department administers key export controls intended to prevent sensitive technology reaching restricted buyers.
In an investigation based on six senior sources, Axios reported that Trump approved proposed action against suspected diversion on at least three occasions, in May, August and on 5 November, but that the Commerce Department did not implement the restrictions as other officials expected.
According to the Axios sources, Lutnick and Commerce Undersecretary Jeffrey Kessler resisted demands to proceed. The sources alleged that Lutnick warned tighter controls could escalate a trade dispute with China, while Treasury Secretary Scott Bessent, Secretary of State Marco Rubio and other officials argued in favour of action. Axios reported that Elon Musk also supported the restrictions when consulted by Trump.
Those accounts describe private conversations relayed by unnamed sources. They are not independently established findings that Lutnick broke a law, deliberately enabled chip smuggling or acted for improper personal gain.
What has the Commerce Department said?
Commerce Department spokesperson Kristen Eichamer denied Axios’s account that Bessent confronted Lutnick during the reported discussions and did not immediately comment on its other allegations. The department’s position therefore disputes part of the reported sequence.
Separately, a White House official told Axios on 12 November that Trump maintained complete confidence in Lutnick and described him as an important advocate of the administration’s trade and tariff policies. That statement should not be mistaken for confirmation that discussions about his future never occurred.
Why Nvidia and China matter
The controversy has intensified since reports emerged concerning Nvidia’s former chief executive Jensen Huang and Alice Huang, a former employee of Singapore-based Nvidia customer Megaspeed. US officials reportedly suspect Alice Huang of ties to Chinese intelligence, an allegation that has not been established in court. Neither a reported personal relationship nor an intelligence suspicion establishes that Jensen Huang knowingly assisted espionage or that Nvidia committed an export offence.
Axios has reported that a classified intelligence warning concerning the relationship circulated among senior US officials and that questions have been raised over why Megaspeed had not been added to a US trade restriction list. It remains necessary to establish which officials received the memo, what action was recommended and when any export approvals or shipments actually occurred.
Jensen Huang resigned as Nvidia chief executive on 12 November, with finance chief Colette Kress named interim CEO. His departure is a separate corporate development. Fish 4 News reported the confirmed leadership change and the distinction between the allegations and Nvidia’s official statements.
Lawmakers want answers
Questions have emerged from lawmakers in both major US parties. As Axios reported, Democratic Senator Elizabeth Warren called on Lutnick and Kessler to explain why export-control loopholes had not been closed. Republican Senator John Kennedy said he expected congressional scrutiny of the administration’s handling of the issue.
The questions concern the administration’s national security decision-making, not merely who occupies the Commerce Secretary’s office. Whether the suspected diversions occurred, whether restrictions were legally required and who was responsible for delays are matters for documentary evidence and any subsequent inquiry.
There is now a formal congressional request for Lutnick’s testimony. Republican Senator Tim Scott, chairman of the Senate Banking Committee, sent letters on Thursday asking Lutnick and former Nvidia chief Jensen Huang to appear before the committee. Reporting on the letters says Lutnick was asked to appear on 10 December and Huang on 3 December. These are requests to testify, not evidence of criminal liability or confirmation that either man has agreed to the proposed dates.
On 11 November, Warren and Democratic Senator Chris Coons separately called on senior administration officials to preserve documents relating to Nvidia exports and the reported intelligence concerns, requesting written confirmation of record-preservation steps by 17 November.
What remains unknown
- Whether Trump will decide to remove Lutnick, retain him or announce another change.
- Why restrictions reportedly approved on several occasions were not implemented as other officials expected, and what decisions were formally recorded.
- Precisely what the Commerce Department knew about individual companies, export licences and alleged diversions, and when.
- Whether any official investigation will find misconduct by Lutnick, Nvidia or associated companies. None should be presumed.
Follow this story
This report is part of Fish 4 News’s continuing coverage of the Nvidia investigation. Read our earlier report on Nvidia’s market-value decline and the board investigation, and the subsequent departure of Jensen Huang. For further developments, see the Nvidia investigation story archive.
Sources
- Reuters, 12 November: White House discussions about Lutnick’s future
- Axios, 11 November: Reporting on delays to Nvidia chip export controls
- Axios, 12 November: White House response and congressional reaction
- Reuters, 13 November: Senate request for Lutnick and Huang testimony
- US Senate Banking Committee, 11 November: Warren and Coons request records preservation
- Nvidia: Chief executive transition announcement
