Summary

  • Reports said Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick clashed over the Nvidia scandal and the issue of sanctions on Megaspeed.
  • Trump decided to move forward with sanctions on Megaspeed after seeking advice from Elon Musk.
  • The Nvidia scandal and White House infighting are adding to the political pressure on Trump, while Democrats said they will launch an investigation into the matter.

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Bessent Confronts Lutnick in Meeting

Issue Could Broaden Into Questions Over Trump's Responsibility

The Jensen Huang-Nvidia scandal is exposing fractures inside Donald Trump's administration.

The New York Times and Axios reported on November 11 that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick clashed at the White House on November 5 over whether to sanction Megaspeed, a Singapore data-center company where Alice Hwang served as an executive.

During the meeting, Bessent pressed Lutnick on why the Commerce Department was refusing to carry out export-control measures, particularly sanctions on Megaspeed. Lutnick replied that he would need to check with the president. Bessent and Lutnick had previously feuded over the Treasury secretary post at the start of the administration, trading personal attacks.

Other participants said Lutnick had previously met with the president to try to change his mind on export restrictions and suggested he was trying to bury the issue. One attendee then proposed implementing the measures that day, and the group went to see Trump. Trump called Tesla CEO Elon Musk for advice and then decided to move ahead with the sanctions.

After the meeting, Lutnick said he would come back with several alternatives. Others pushed back, saying a decision had already been made and should be carried out. The Commerce Department denied the reports. The New York Times said Lutnick had also refused to act even after a confidential memo about the relationship between Jensen Huang and Alice Hwang was delivered to Trump and others in May.

The Nvidia scandal and the White House infighting around it are adding to the political pressure on Trump after his party's heavy losses in the November 3 midterm elections. Because Trump was highly likely to have been briefed on the decision to delay sanctions on Megaspeed, he may find it difficult to avoid questions about responsibility. Democrats have said they will investigate the matter.

Lee Sang-eun, Washington correspondent, Hankyung.com, [email protected]

Korea Economic Daily