Trump sticks by Commerce Secretary Lutnick despite Nvidia inaction
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President Trump and Commerce Secretary Howard Lutnick at an Oct. 2026 campaign event. Photo: Nathaniel Wilder/Bloomberg via Getty Images
The White House is standing by Commerce Secretary Howard Lutnick despite a view within the administration that Lutnick delayed action to address concerns over chip smuggling to China.
Why it matters: Congress smells blood in the water following bombshell reports that U.S. national security may have been jeopardized by former Nvidia CEO Jensen Huang's relationship with a suspected Chinese spy.
- Lawmakers want to know what the Trump administration did or did not do in response to that intelligence — and Lutnick, the official in charge of the department at the center of export control policy, is squarely in their field of view.
President Trump, however, is not distancing himself from the secretary.
- "Secretary Lutnick is a champion of President Trump's America First trade and tariff policies, which have secured almost 20 fair trade deals and trillions in manufacturing investments," a White House official tells Axios.
- "President Trump maintains complete confidence in the secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history."
Catch up quick: Lutnick was sent intelligence about Jensen Huang's relationship with an alleged Chinese spy and repeatedly did not take export control action — despite pressure from the broader administration and the president himself, Axios first reported.
- Lutnick's role is prompting scrutiny on the Hill from members on both sides of the aisle.
- "Secretary Howard Lutnick and Under Secretary Jeffrey Kessler must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China's military," Elizabeth Warren (D-Mass.), poised to be the next Senate Banking Committee chair, said in a statement.
- "The obvious question is why did he choose to sell advanced chips?," Sen. John Kennedy (R-La.) told Politico.
- "Secretary Lutnick needs to answer that in front of God and country," Kennedy added. "I mean, there will be a congressional investigation. But I don't think he ought to wait on Congress."
The Commerce Department has not confirmed for the record whether or not Lutnick has seen the memo.
Yes, but: "It's impossible that Howard Lutnick didn't know about this memo," one senior administration official told Axios.
- "Of course Commerce got the memo. It had to get the memo. That's the point of the memo. It's about chips. Commerce deals with chips," a second official said.
Meanwhile, Jensen Huang resigned as Nvidia CEO following reports of a second affair with a direct report. He previously admitted to an affair and apologized, but members on both sides of the aisle are also not letting him off the hook.
- "NVIDIA CEO Jensen Huang's decision to resign does not absolve him, other executives, or the company as a whole of responsibility for putting our national security at risk or for any potential violations of our laws," Warren said.
- Republican House Foreign Affairs Chair Brian Mast (Fla.) and House Intelligence Committee Chair Rick Crawford (Ark.) told reporters on Thursday that Huang's resignation doesn't change their plans to probe him and the company, Bloomberg Government reported.
- "Jensen Huang himself has been a pretty bold, some might even say arrogant promoter, sort of dismissing our concerns about China having access to these most advanced chips. And I do not take that lightly ... I would be happy to support a subpoena," Republican Sen. Kevin Cramer (N.D.) said on CNBC.
The bottom line: Resignations and apologies aside, Washington is ready to hold someone accountable as the FBI, Congress and Nvidia's board all investigate in tandem.
