Can Trump Keep Howard Lutnick? Nvidia Controversy Puts His Job In Play

US Commerce Secretary Howard Lutnick has agreed to testify voluntarily before the Senate Banking Committee over the Trump administration’s handling of Nvidia’s advanced AI-chip exports to China, as scrutiny of the department intensifies following former Nvidia CEO Jensen Huang’s resignation.

Lutnick’s spokesperson Kristen Eichamer confirmed to NBC News that the secretary had agreed to appear before the committee after its chairman, Republican Senator Tim Scott, requested a public hearing for December 10. The request is not a subpoena or a formal order compelling his testimony.

The development comes amid reports that senior White House officials are discussing whether Lutnick should be removed from his position. Reuters reported on Thursday, citing two people familiar with the matter, that his future was under consideration. However, a White House official told the news agency that President Donald Trump "maintains complete confidence in the secretary and his ability to carry out the position".

Why Is Lutnick Facing Scrutiny?

The Commerce Department oversees US export controls through its Bureau of Industry and Security (BIS), which regulates sensitive technology transfers and investigates suspected violations. Its role has come under scrutiny over allegations that advanced Nvidia chips were diverted through Singapore-based company Megaspeed to Chinese customers.

The controversy has widened following reports about Huang’s relationship with Alice Huang, a Megaspeed executive suspected by US authorities of links to Chinese intelligence. Nvidia’s former chief stepped down on Thursday, while the company’s board had earlier opened an independent investigation into reports that he was targeted by a foreign intelligence operation. The allegations remain contested, and the Justice Department has said it has not reached a conclusion on whether Alice Huang was a spy.

Lawmakers are questioning whether the Commerce Department adequately responded to concerns about possible chip diversion. The administration's January 2026 policy allows export licence applications for Nvidia's H200 and AMD's MI325X chips to China to be reviewed case by case, subject to security and compliance conditions. This was not an unrestricted authorisation to sell the chips.

On Wednesday, Democratic Senators Elizabeth Warren and Chris Coons directed Lutnick, Secretary of State Marco Rubio and White House Chief of Staff Stephen Miller to preserve records concerning Nvidia exports, Megaspeed and the reported intelligence operation. Separately, House committees have sought testimony from Nvidia executives and Commerce Under Secretary Jeffrey Kessler.

Can Trump Remove Lutnick?

Yes. The US President generally has the authority to dismiss Cabinet secretaries, who serve at the president’s pleasure. Trump would not need to wait for the Senate investigation or a finding of wrongdoing to remove Lutnick.

The Congress can investigate the secretary, request documents and compel testimony through subpoenas. It can also pursue impeachment under Article II of the Constitution. The House would need a simple majority to impeach, followed by a Senate trial in which conviction and removal require a two-thirds majority.

For now, Lutnick remains in office and has agreed to answer lawmakers’ questions voluntarily. The White House has publicly backed him, even as reports of internal discussions over his future point to growing pressure within the administration. His December appearance is likely to put the Commerce Department’s export-control decisions, and the administration’s handling of the Nvidia controversy, under further scrutiny.