Commerce Secretary Howard Lutnick Faces Possible Dismissal as Outrage Grows Over Nvidia AI Chip Exports
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Senior White House officials are reportedly debating whether to remove Commerce Secretary Howard Lutnick as lawmakers blast the administration’s weak handling of AI chip exports to China following Jensen Huang’s resignation and a widening scandal.
Senior White House officials are reportedly discussing the possible removal of Commerce Secretary Howard Lutnick amid a scandal involving Nvidia’s former chief executive Jensen Huang, two sources familiar with the matter said on Thursday. Lawmakers have intensified criticism of Lutnick for the administration’s refusal to add dozens of Chinese firms to a key U.S. trade blacklist and for what many view as glaring failures in overseeing Nvidia’s exports to China.
The scrutiny of Lutnick predates Huang’s resignation, which followed reports of an alleged affair with Alice Huang, a Chinese businesswoman suspected by U.S. authorities of spying for Beijing. The controversy has sharpened fears that the Commerce Department has not done nearly enough to stop AI chip shipments to China.
A White House official later said President Donald Trump “maintains complete confidence in the secretary and his ability to carry out the position.”
Republican Senator John Kennedy told CNN he was uncertain whether Lutnick should lose his job and urged the secretary to answer questions publicly, adding, "> This is as serious as an aneurism."
Democratic Senator Elizabeth Warren said, "> 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, soon to chair the Senate Banking Committee, and Senator Chris Coons wrote to Lutnick, Secretary of State Marco Rubio and White House chief of staff Stephen Miller, requesting preservation of all documents related to Nvidia’s AI-chip exports to China.
Senators Ron Wyden and Representative Richard Neal also wrote to Lutnick, questioning the administration’s approval of sales of Nvidia’s advanced H200 AI chips to Chinese entities with alleged links to the Chinese government, military and sanctioned groups. They described the December 2025 export arrangement as an “unconstitutional export tax.”
Republican Representative Brian Mast said Congress should investigate the Commerce Department’s role in chip-export approvals, while expressing confidence in Lutnick.
The Commerce Department has not added any new Chinese companies to the trade blacklist since October 2025, the longest gap in more than a decade, according to Reuters. Senate Intelligence Committee Chairman Tom Cotton urged Lutnick to bar memory-chipmaker CXMT from the U.S. market and deny it access to American technologies.