Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be pushed out, two people familiar with the situation told Reuters on Thursday, November 12, 2026, as the fallout from the spy scandal around Nvidia's now-former chief executive spreads through the Trump administration.

Key Points

• Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be pushed out, two people familiar with the situation told Reuters on Thursday.
• The talks come amid the spy scandal around Nvidia's now-former chief executive Jensen Huang, who stepped down the same day after reports of an affair with Alice Huang, whom US authorities suspect of spying for Beijing.
• Lawmakers have criticised Lutnick over the refusal to add dozens of Chinese companies to a key trade blacklist and over Nvidia's exports to China.
• A White House official said earlier on Thursday that President Donald Trump "maintains complete confidence in the secretary".
• The White House and Commerce Department did not immediately respond to Reuters about Lutnick's future.

What Happened

The discussions were described by two people familiar with the situation who spoke to Reuters on Thursday. They said senior officials are weighing whether Lutnick should be removed as commerce secretary. No decision had been made, and the sources did not say who was driving the talks.

The talks surfaced the same day Jensen Huang resigned as Nvidia's chief executive after 33 years. Huang stepped down after reports of his affair with Alice Huang, a former Megaspeed International executive whom US authorities suspect of being a Chinese intelligence operative. Publicly, the White House moved to steady the story, with an official saying Trump "maintains complete confidence in the secretary and his ability to carry out the position".

Background: Howard Lutnick and the Nvidia Export-Control Row

Criticism of Lutnick did not begin with Huang's resignation. It centres on why the Commerce Department, which controls exports of America's most advanced technology, has stopped adding Chinese companies to its entity list, the blacklist for sensitive technology. In June, Reuters reported the administration had held off adding DeepSeek, memory chipmaker CXMT and more than 100 other companies flagged as national security risks. The US has posted no additions since October 2025, the longest gap in over a decade.

Pressure intensified inside the administration. At a White House Situation Room meeting on November 5, Treasury Secretary Scott Bessent challenged Lutnick: "How come Megaspeed isn't on the entities list?" Lutnick replied: "I don't know. I'll look into it", making no commitment to act. Megaspeed, a Singapore-based firm, is accused of funnelling advanced Nvidia chips worth about $7.5 billion into China. Trump has authorised a crackdown on firms suspected of diverting Nvidia chips to China three times this year, yet the restrictions still have not been implemented.

Lutnick was also briefed months ago on Huang's affair, and received a highly classified memo on it in May 2026 overseen by Secretary of State Marco Rubio. He knew about the relationship at the centre of the scandal, yet the export controls stayed unchanged.

Reactions: Democrats Demand Answers, the White House Holds the Line

Democrats have seized on the affair. Senator Elizabeth Warren said: "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". Warren and Senator Chris Coons have written to Lutnick, Rubio and White House Chief of Staff Stephen Miller demanding the administration preserve all Nvidia chip-export documents, with confirmation by November 17. New pressure arrived on Thursday, when Senator Ron Wyden and Representative Richard Neal, the top Democrats on the Senate Finance and House Ways and Means committees, wrote to Lutnick saying they were investigating Nvidia chip sales to Chinese companies "with concerning links to the Chinese government, military, and sanctioned entities".

China called the spy claims "groundless speculation" and a pretext for a technology blockade. Megaspeed denies wrongdoing, calling itself a "compliant and legal company". Singapore has barred Alice Huang from re-entering the country. Nvidia's board met late on Wednesday, November 11, and Huang stepped down the next day, with Colette Kress named interim chief executive.

Why It Matters

Lutnick's future matters because the Commerce Department is the gatekeeper of America's most powerful technology. Nvidia makes the chips powering the world's most advanced AI systems, and Washington's export controls are the main tool keeping that technology from China's military. If $7.5 billion in chips reached China through a channel the controls were supposed to catch, the controls themselves are in question, and so is the official in charge of them.

The internal discussions also show how far the scandal has travelled. What began as a story about one chief executive's private life is now a test of the administration's China policy and its willingness to hold its own officials to account. That senior officials are discussing removal shows the affair is now seen inside the administration as a political and national-security liability.

What Happens Next

The first test is whether the White House statement of confidence holds. If the internal discussions continue, or more lawmakers join the criticism, the pressure on Lutnick will grow, and a resignation or removal could come quickly. Congress will not wait: Wyden and Neal's investigation is under way, and Warren and Coons expect confirmation by November 17 that the records have been preserved, followed by a briefing on the risks.

The FBI investigation and the Nvidia board's inquiry, run by former federal prosecutor Joon Kim, both continue. Their findings could determine whether the scandal produces criminal charges, further resignations or an overhaul of export controls. For now, Lutnick remains commerce secretary, with the president's stated confidence behind him and senior White House officials discussing his future behind closed doors. The gap between those two facts is the story, and it will not stay open for long.

Frequently Asked Questions

Is Howard Lutnick being fired as commerce secretary?

No decision has been made. Senior White House officials are discussing whether he should be pushed out, Reuters reported, while a White House official said Trump "maintains complete confidence".

What is the Nvidia spy scandal?

Reports say Nvidia's former chief executive Jensen Huang had an affair with Alice Huang, a former Megaspeed executive US authorities suspect of being a Chinese intelligence operative, and that it aided Nvidia chip shipments to China. Huang stepped down on November 12, 2026.

Why are lawmakers criticising Lutnick?

They say the Commerce Department has not added Chinese companies to the entity list since October 2025, the longest gap in over a decade, and has not acted against Megaspeed despite warnings.

Who is investigating the chip sales to China?

Senator Ron Wyden and Representative Richard Neal are investigating the approval of Nvidia chip sales to Chinese companies with links to China's government, military and sanctioned entities. The FBI is also investigating.

What happens next for Lutnick?

The White House discussions continue, Congress expects the Nvidia export records preserved by November 17, and the FBI and board inquiries are ongoing.

Related coverage: Bessent confronts Lutnick over Megaspeed Nvidia chips; Trump approved Nvidia chip crackdown three times, but Lutnick keeps stalling; Warren and Coons demand Nvidia chip export records be preserved.