Trump export control push faces delay over Nvidia chip diversion to China
The Trump administration is moving again to tighten enforcement against companies suspected of sending Nvidia chips to China through diversion channels. Internal disagreement is slowing that effort, with U.S. Commerce Secretary Howard Lutnick reported to have resisted steps tied to the crackdown.
Highlights
- President Donald Trump on Thursday authorizes renewed export control enforcement targeting companies diverting Nvidia chips to China, marking the third such action this year.
- Administration friction intensifies as Lutnick obstructs enforcement efforts, prompting debate over the aggressiveness of semiconductor export controls toward China.
- Situation Room meeting Thursday sees Treasury Secretary Scott Bessent challenge Commerce Department's resistance, with Lutnick deferring final support pending approval from Trump.
White House dispute over export control enforcement
As reported by Reuters, citing Axios, President Donald Trump on Thursday authorizes a renewed crackdown on companies suspected of diverting Nvidia chips to China, the third such move this year. The report says Trump consults billionaire Elon Musk before giving approval for the effort.Axios reports that Lutnick repeatedly stands in the way of the push. The dispute highlights friction inside the administration over how aggressively to apply export controls tied to advanced semiconductors and China-bound trade flows.
Cabinet meeting underscores policy tensions
Lutnick meets in the Situation Room on Thursday with U.S. Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, Trade Representative Jamieson Greer and Secretary of State Marco Rubio. During that meeting, Bessent confronts Lutnick over resistance from the Commerce Department to implementing the export controls.According to the report, Lutnick appears to agree during the discussion but says he needs to check with Trump. The episode points to continued internal debate over how the administration carries out semiconductor restrictions with implications for technology trade and U.S.-China supply chain enforcement.
As we previously wrote, Nvidia urged deeper AI safety dialogue with Chinese companies as governments weigh stronger safeguards.
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