U.S. President Donald Trump speaks alongside Howard Lutnick in the Oval Office in Washington, D.C., U.S., February 21, 2025. REUTERS/Nathan Howard
Commerce Secretary Howard Lutnick is under increased scrutiny for refusing to act on AI chip maker Nvidia, and now his fellow employees in President Donald Trump's administration say he's got to go.
It was reported this week that members of President Donald Trump's Cabinet were briefed on the spy that chip maker Nvidia CEO Jensen Huang admitted to having an extramarital affair with. New York Times journalist Maggie Haberman then reported that the president also received a briefing on the matter twice. Trump previously denied he knew anything about it.
To make matters worse, a bombshell report revealed that Lutnick blocked any investigation into Nvidia, in which his old company, now run by his sons, holds a significant stake, about $1.2 billion, according to CBS News.
Things finally got so bad that other Cabinet officials had to intervene and demand action, Axios reported.
Huang and Trump have built a close relationship as Trump continues to take advantage of the 2022 CHIPS and Science Act. There's now a fear about whether Huang's relationship with Alice Huang (also known as Huang Le), resulted in intelligence being obtained for China and Lutnick, along with Trump, allowed it to happen.
Politico Playbook reported Friday that the "knives are out" after his "lax oversight" and ignored warnings, all while he gave Nvidia unusually favorable access.
Ultimately, Lutnick had the authority and warning signs to tighten enforcement but instead gave Nvidia a pass and resisted restrictions. Whether that reflects a defensible policy choice, mismanagement, favoritism or misconduct remains to be seen, but it has been enough for top Trump officials to call for his ousting.
Politico said that seven current and former administration officials said the Nvidia scandal is significant enough to undermine Lutnick's position in the administration. Trump maintains that he has "complete confidence" in Lutnick.
Meanwhile, Congress is now looking to Lutnick and Democrats haven't even taken over the House and Senate. Senate Banking Chair Tim Scott (R-S.C.) called on Lutnick and Huang to testify as soon as next month. Lutnick's office said he will.
"Huang’s downfall has also significantly ramped up the legislative prospects for curbs on semiconductor exports to China," Playbook reported, citing a piece by Oliver Ward and colleagues. "It’s a dramatic reversal from the more lax approach the White House previously took."
The Guardian reported Thursday evening that Trump officials are now discussing whether Lutnick must go.
Sen. John Curtis (R-Utah) said that Lutnick’s delay in enforcing controls on Huang's mistress' company “raises the question of whether the commerce department is acting in the best interests of the American people.”
He was one of several Republicans. Speaker Mike Johnson (R-La.) similarly said that there was a growing agreement among the caucus that it's time for Congress to step in if Lutnick refuses.
