US Commerce Secretary Lutnick stalling Trump's Nvidia chip crackdown on China
Howard Lutnick has resisted implementing President Donald Trump's orders to restrict the diversion of advanced AI chips to China, according to Axios.
US Commerce Secretary Howard Lutnick has repeatedly delayed efforts by President Donald Trump to target companies suspected of sending advanced Nvidia AI chips to China, according to a report by Axios cited by India Today.
The latest approval for tighter restrictions occurred last Thursday after Trump consulted billionaire Elon Musk. However, Lutnick has resisted implementing these measures, leading to concerns within the administration that the Commerce Department is obstructing the President's decisions.
During a meeting in the White House Situation Room last Thursday, Treasury Secretary Scott Bessent reportedly confronted Lutnick regarding his department's resistance to export controls. The discussion focused on Megaspeed, a firm involved in an alleged chip-smuggling and espionage controversy.
Lutnick warned that such moves could trigger a trade war with China, though other officials argued that Beijing is already acting against US interests. While Trump eventually told officials to proceed with the crackdown, the restrictions have not yet been enforced.
The dispute follows at least three instances in May, August, and on November 5 when Trump approved action against chip diversions. The Commerce Department spokesperson Kristen Eichamer denied that Bessent confronted Lutnick during the meeting but did not comment on other allegations.