White House Officials Debate Ousting Commerce Secretary Over Nvidia Spy Scandal

Senior US officials are weighing whether to push out Commerce Secretary Howard Lutnick. The debate comes amid a growing spy scandal tied to former Nvidia boss Jensen Huang. Lawmakers say Lutnick failed to tighten trade controls on China in time.

Senior Officials Weigh Lutnick’s Future

Several senior White House officials are discussing whether Commerce Secretary Howard Lutnick should resign. The talks come amid a scandal surrounding Nvidia founder Jensen Huang. Reuters reported this, citing informed sources familiar with the matter.

Treasury Secretary Raises Early Concerns

Axios reported earlier that Treasury Secretary Scott Bessent raised concerns about Lutnick’s handling of the matter. Bessent reportedly criticized Lutnick because Megaspeed, an Nvidia client, never made it onto the sanctions list. According to the outlet, Lutnick received an early warning about Huang’s ties to a woman suspected of working for Chinese intelligence. He reportedly delayed new restrictions anyway. Officials say he feared this could worsen trade tensions with China.

What Reuters Reported

Reuters shared a direct line from its report: “Senior White House officials are discussing whether to seek the resignation of US Commerce Secretary Howard Lutnick amid the spy scandal surrounding former Nvidia CEO Jensen Huang.”

Lawmakers Question Export Controls

Several US lawmakers have criticized Lutnick too. They say he refused to add dozens of Chinese firms to the trade blacklist. Many also doubt whether export controls on Nvidia’s chips to China actually work. Still, a White House spokesperson insists President Donald Trump fully trusts his commerce chief. The spokesperson said Trump remains confident Lutnick can handle his duties.

Huang Steps Down Amid Scandal

Nvidia announced Huang’s resignation last Thursday. He stepped down from both his president and CEO roles. The move followed revelations about his close relationship with businesswoman Alice Huang. She has reportedly been described as a possible information source for Chinese government bodies.

Beijing Rejects Espionage Claims

China’s Foreign Ministry earlier dismissed these claims. Officials in Beijing called the “Chinese espionage” allegations linked to the Nvidia case baseless.