White House Weighs Lutnick's Future as Nvidia Spy Fallout Grows

The White House is discussing Commerce Secretary Howard Lutnick’s future in the job, people familiar with the matter told Reuters, the wire service said in a post on X on Thursday, as fallout from the spy scandal surrounding former Nvidia CEO Jensen Huang spreads to Washington.

At the same time, a White House official said President Donald Trump “maintains complete confidence in the Secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history,” according to The National and the Times of India.

White House discussing Howard Lutnick's future as Commerce secretary, people familiar say https://t.co/lzmJNC6XhP

— Reuters (@Reuters) November 12, 2026

Scrutiny Over Chip Exports to China

Lutnick is facing criticism from Capitol Hill after reports that he delayed action to curb chip smuggling, along with concerns about whether the government properly oversaw Nvidia chip exports to China, The National reported.

Jensen Huang resigned as Nvidia’s president, CEO and board member after confessing to an extramarital affair with a woman suspected of being a Chinese spy, the Times of India reported. That woman, Alice Huang, was an executive at Megaspeed, a Singapore-based Nvidia customer accused of illegally diverting U.S.-made chips to China, according to the Times of India. Nvidia named Colette Kress, its executive vice president and chief financial officer, as interim CEO until a permanent successor is named, the outlet reported.

Lutnick was reportedly sent a classified memo concerning Huang’s affair and the potential security concerns, The Hill reported, citing Axios.

Republicans Want Answers

Sen. Jim Banks (R-Ind.) said on Fox News on Thursday that “this news is as concerning as it gets,” according to The Hill. Banks said it appears Lutnick “used loopholes to allow some of these chip sales to occur,” even though President Trump had directed his administration and the Commerce Department not to allow that, The Hill reported.

“I would like for Secretary Lutnick ASAP to come testify before the Senate Banking Committee,” Banks said, according to The Hill. He added that many Republican and Democratic senators on the committee have “questions and concerns about what’s happened over the last year,” The Hill reported.

Banks also pointed to the GAIN AI Act, which he sponsored with Sen. Elizabeth Warren (D-Mass.) and which would have required chipmakers to give U.S. firms first pick on advanced AI chips before selling to China or other countries of concern, according to The Hill. Nvidia opposed that legislation in 2025, The Hill reported, citing Reuters.

Democrats Press Commerce Too

Warren, who is set to chair the Senate Banking Committee, said Lutnick and Under Secretary Jeffrey Kessler must explain why they have not closed export control loopholes, The National reported.

Three senior Democrats on the House Foreign Affairs Committee have also demanded answers from Lutnick and asked him to halt exports of advanced AI chips, according to The Hill. “If Commerce was not briefed, we need to know why. If it was briefed, we need to know how it responded,” they wrote in a letter sent Monday, The Hill reported.

The Commerce Department did not immediately respond to a request for comment, according to The National.

Sources

• Reuters on X
• The National
• The Hill
• Times of India

Reporting by Daily Beltway.