Senior White House officials are discussing the possible dismissal of US Trade Secretary Howard Lutnik amid the scandal surrounding Nvidia and the supply of advanced artificial intelligence chips to China. This was reported by Reuters on 12 November 2026, citing two sources familiar with the situation. Despite discussions about a possible resignation, President Donald Trump has not officially announced Lutnik’s dismissal.
- Discussions are taking place at the White House regarding the possible dismissal of US Trade Minister Howard Lutnik.
- The reason for the criticism is what lawmakers see as insufficient controls over the export of Nvidia chips to China.
- The scandal intensified following the resignation of Nvidia’s chief executive, Jensen Huang.
- Members of Congress are demanding an explanation regarding the Ministry of Trade’s decisions and the restrictions imposed on Chinese companies.
- The White House has stated that Donald Trump continues to have full confidence in Lutnik.
Why is the White House talking about Lutnik’s resignation?
According to Reuters, dissatisfaction with the US Secretary of Commerce’s performance is growing due to the administration’s decision not to add a number of Chinese technology companies to the trade blacklist.
US lawmakers are also questioning the effectiveness of government controls on the export of advanced processors Nvidia, which can be used to develop systems artificial intelligence and military technologies.
In June, Reuters reported that the administration Trump has postponed the inclusion on the export sanctions list of more than 100 companies that have raised concerns regarding US national security. Among them are the artificial intelligence developer DeepSeek and the memory chip manufacturer CXMT.
According to the agency, the US authorities have not published any new additions to this list since October 2025. This is the longest gap in over ten years.
Separately, Axios reported on 11 November that Lutnik had repeatedly blocked measures against companies suspected of illegally diverting US-made AI chips to China. Reuters emphasises that these allegations are based on reports from sources, rather than on violations established in court.
How the Nvidia scandal has increased the pressure on the minister
The situation escalated following reports of the resignation of Nvidia’s chief executive Jensen Huang 12 November. According to Reuters, the decision came amid reports of his personal relationship with Alice Huang, whom the US intelligence services suspect of working for Chinese intelligence.
Alice Huang previously worked for Megaspeed, a company registered in Singapore. According to Reuters, since June 2024, the company has purchased cutting-edge Nvidia chips worth over $4.8 billion.
Megaspeed has previously been accused of illegally supplying US microchips to China. The company has denied these allegations and stated that it takes compliance with US export legislation seriously. The allegations against Alice Huang do not constitute proof of her involvement in espionage either.
US Congress demands an explanation regarding chip exports
Democratic senators Elizabeth Warren і Chris Koons have called on the Trump administration to preserve documents relating to the export of advanced Nvidia chips to China and the potential risks to national security.
They also raised the question of whether American technology might have found its way into Chinese companies linked to military bodies and organisations subject to US restrictions.
Republican Senator John F. Kennedy, when asked by CNN about Lutnik’s possible dismissal, stated that he did not yet know whether he should be removed from office. At the same time, he emphasised the seriousness of the situation and the need to obtain an explanation from the minister.
13 November, the US Secretary of the Treasury Scott Bessent He publicly expressed his dissatisfaction with the delays in introducing export restrictions. According to him, several departments supported the inclusion of Megaspeed on the relevant list, but the decision rested with the Ministry of Trade.
Will Trump sack Howard Lutnik?
Despite reports of his possible resignation, the White House has publicly backed the Trade Minister.
A spokesperson for the administration told Axios that Lutnik plays an important role in implementing the President’s trade and customs policies.
According to him, Donald Trump continues to have full confidence in the minister and his ability to carry out his duties.
As of 13 November 2026, Howard Lutnick remains the US Secretary of Commerce. The Reuters report concerns internal discussions regarding his future, rather than a decision having been taken to dismiss him. How the situation develops will depend on the President’s stance and the results of investigations into exports of US AI chips.
