Trump authorizes third crackdown on Nvidia chip diversions to China; Commerce Secretary stalls enforcement

President Donald Trump has authorized a third crackdown this year on companies suspected of diverting Nvidia chips to China, following consultations with Elon Musk, but US Commerce Secretary Howard Lutnick has stalled the implementation. Lutnick met with top officials including Treasury Secretary Scott Bessent, who confronted him over his department's resistance to enforcing the export controls. Lutnick appeared to agree but said he needed to check with Trump, according to Axios. The move follows a national-security and political storm surrounding Nvidia CEO Jensen Huang and the company's China business. Nvidia's board is investigating whether Huang was targeted by foreign intelligence, after reports of his close relationship with a Chinese businesswoman. Huang, a Trump ally, has flown with the president to China and attended a state dinner for Chinese President Xi Jinping.