White House Weighs Removal of Commerce Secretary Howard Lutnick Over Nvidia Deal

Commerce Secretary Howard Lutnick is under consideration for removal from his post as White House officials debate the fallout from a scandal involving Nvidia and a suspected Chinese spy. Reuters reported on Thursday that discussions are underway to replace the secretary, who served as a primary internal advocate for allowing the chipmaker to sell advanced technology to Megaspeed, a Singapore-based firm.

Megaspeed is led by a Chinese national with whom former Nvidia chief Jensen Huang had a romantic relationship. U.S. intelligence agencies identified the woman, Huang Le, as an agent of China. The administration’s push to approve the chip sales occurred despite questions regarding the national security implications of the transaction.

President Donald Trump has continued to defend Huang, stating that an intelligence community assessment confirming the romantic relationship did not significantly impact his view of the former executive. Trump characterized the situation as a sad episode for Huang, who donated $25 million to the White House ballroom project. However, Trump’s public defenders have largely spared the president from direct political fire, directing their scrutiny toward Lutnick instead.

Louisiana Republican Sen. John Kennedy called for Lutnick to provide answers to the public. Kennedy told Politico that the secretary needs to address the situation in front of God and country. The senator’s comments reflect a growing sentiment among some Republicans that the commerce secretary is the most accessible target for accountability.

The timeline of events accelerated on Thursday morning when Huang resigned from his position at Nvidia. His departure came amid reports of two additional affairs with subordinates. The resignation adds to the pressure on Lutnick, who must now explain the rationale behind the administration’s support for the Megaspeed deal.

Incoming Democratic leaders are preparing to investigate the matter with greater procedural power. Sens. Chris Coons of Delaware and Elizabeth Warren of Massachusetts, who will chair the Senate Banking and Foreign Affairs Committees in the next Congress, sent a letter to Lutnick, National Security Adviser Marco Rubio, and White House Chief of Staff Stephen Miller. The letter requests that all documents related to the deal be preserved and asks the officials to testify before Congress regarding the risks the operation posed to national security.

Former officials from Trump’s first term suggest that focusing on Lutnick is a strategic move for Republicans. Ty Cobb, a former federal prosecutor who served in the White House Counsel’s office, noted that Lutnick is a logical starting point for inquiries. Cobb questioned whether Lutnick acted on his own judgment or followed direct orders from the president in failing to place Huang Le’s company on the national security threat list.

John Bolton, a former national security adviser, agreed that the current approach targets subordinates while the president remains largely insulated. Bolton, who was prosecuted by the Department of Justice, stated that eventually one of the subordinates will place blame on Trump. Lucy Caldwell, a former Republican consultant, described the dynamic as a formula where another Republican close to power becomes the fall guy to protect the president.

The White House and the Commerce Department did not respond to questions regarding the potential removal of Lutnick or the details of the Megaspeed approval process. The next major step in the oversight process will occur in January when the new Congress convenes and Democrats take control of key committees with subpoena authority.

Lutnick’s tenure has already faced scrutiny over other matters, including his time on Jeffrey Epstein’s private island and his support for the administration’s tariff policies. The Nvidia scandal adds a third major challenge to his position, placing him at the center of a rapidly expanding investigation into executive conduct.