Democrats Probe Trump Administration’s Nvidia Chip Deal

In a letter to Commerce Secretary Howard Lutnick, the Democrats described the arrangement as an apparent attempt to disguise an unconstitutional export tax as a tariff. They said Nvidia’s Taiwan-manufactured H200 chips were routed through the United States for security review and export licensing before being sent to Chinese customers. The administration imposed a 25% tariff when the chips entered the country, the lawmakers said, citing Section 232 authority, which is intended to address imports that threaten national security.

Wyden and Neal said the Commerce Department then issued licenses for the chips to be sold in China. They asked the administration to preserve records related to the tariffs and licenses, along with communications involving Nvidia and Huang, who announced his resignation on Thursday. The lawmakers are poised to lead the Senate Finance Committee and House Ways and Means Committee, respectively, in the upcoming Congress.

Their letter also cites reports that Trump and Lutnick had been briefed on US intelligence concerning Alice Huang, a Chinese businesswoman who had a relationship with Jensen Huang. The lawmakers said intelligence indicated she was funneling information to the Chinese government and facilitating access to Nvidia AI chips. The New York Times reported Trump took no action after being briefed last fall; Axios reported Lutnick also received classified information about the relationship.

Wyden and Neal said Trump authorized Nvidia’s China sales in December 2025 despite the reported intelligence. They also pointed to a Commerce Department investigation into Singapore-based Megaspeed, suspected of smuggling Nvidia chips into China, which was halted after an Nvidia executive intervened, according to the lawmakers’ letter. Alice Huang had previously worked at Megaspeed as managing director.

Trump praised Huang after his resignation, saying he had “done a fantastic job”; earlier, he called him “an honorable guy.” Bloomberg reported Huang agreed on Thursday to testify in a closed-door House hearing later this month after facing subpoena threats.