Bessent points finger at Lutnick over Nvidia chip exports as Trump advisers discuss possible Commerce Secretary ouster

Treasury Secretary Scott Bessent criticized the Commerce Department for its delay in labeling Nvidia customer Megaspeed as a potential national security threat, amplifying an ongoing internal blame game following Nvidia CEO Jensen Huang's resignation. Bessent's remarks come as some of President Donald Trump's advisers, troubled by Huang's departure, have begun considering the possibility of removing Commerce Secretary Howard Lutnick, according to sources familiar with the discussions.

The White House, however, has maintained its confidence in Lutnick, stating that Trump "maintains complete confidence in the secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history." Despite this, Trump and Lutnick, who are longtime friends, have drawn concern from certain administration officials, who have called for Lutnick's dismissal.

Bessent alleged that the Commerce Department, headed by Lutnick, failed to act on directives from Trump to place Megaspeed on an export blacklist, stating that Commerce "has the pen" and that the department's inaction violated those directives. He emphasized the frustration that Trump's administration feels over China receiving advanced Nvidia chips, which could give the Chinese an advantage in the AI race.

The issue gained prominence when it was reported that Huang had an affair with a Megaspeed employee believed to have intelligence connections to China, prompting senior Trump officials, including Lutnick, to be briefed on the matter months ago. Despite this, the Commerce Department has thus far resisted placing Megaspeed on the entity list, citing concerns about potential violations of US law.

In a recent Situation Room meeting, Bessent confronted Lutnick about the department's hesitation to blacklist Megaspeed, though Lutnick did not immediately commit to taking any specific action.