US Commerce Secretary Howard Lutnick's position has come under threat amid allegations that he failed to take adequate measures to control Nvidia's advanced artificial intelligence (AI) chip sales to China. Two people familiar with the matter told Reuters on Thursday that senior White House officials are discussing whether he should be removed from his post.

Trump administration under scrutiny

The Trump administration has faced significant criticism for failing to place dozens of Chinese entities on the US trade sanctions list. Lawmakers have also raised questions about the government's oversight of Nvidia's chip exports to China. These developments have fueled discontent over Lutnick's role as Commerce Secretary.

Questions over H200 chip approval

Lawmakers have also questioned the decision made in December 2025 to permit Nvidia to sell its advanced H200 chips to China. They allege that the decision effectively weakened US controls over China's technology sector. The approval has sparked fresh controversy centered on Lutnick's involvement.

Speculation over dismissal

According to a Reuters report citing internal White House sources, no final decision has been made regarding action against Lutnick. However, the ongoing discussions among senior officials indicate the administration is taking the matter seriously. Lutnick has not yet issued any formal response.

Context

Nvidia's chip exports remain a highly sensitive issue amid the US-China technology rivalry. Washington has imposed strict controls on advanced semiconductor exports to China in recent years. Analysts suggest that the allegations against Lutnick and the possibility of his removal could mark a new turning point in US trade policy.