Treasury Secretary Scott Bessent reportedly told Commerce Secretary Howard Lutnick to "go f---" himself during their 2024 battle for the Treasury job. On Friday, he found a more diplomatic way to put his old rival on the spot over the Nvidia China chip scandal.
The dispute centers on Megaspeed, a customer of Nvidia Corp. (NVDA) suspected of diverting advanced AI chips to China. Megaspeed denies wrongdoing.
Addressing why Megaspeed had not been blacklisted, Bessent told CNBC Friday that Treasury, State and the U.S. Trade Representative had supported restrictions for months, but the decision rested with Lutnick's Commerce Department.
"Commerce has the pen," Bessent said. "You will have to ask them about their internal processes."
The remarks mark a public escalation in the longtime rivals' feud, as senior White House officials reportedly discuss Lutnick's future.
From Treasury Rivals to Bitter Enemies
The rivalry began during Trump's 2024 transition, when both men were competing to become Treasury secretary. Lutnick tried to undermine Bessent's candidacy by highlighting his ties to George Soros, Fox Business reported.
The feud flared again in 2025 over a proposed Ukraine minerals deal. Bessent reportedly dismissed Lutnick's alternative plan as a "s---y deal," telling him, "You're an idiot," according to Maggie Haberman and Jonathan Swan's book Regime Change. The authors said Trump later mocked Lutnick.
The Nvidia Fight Gets Personal
Bessent confronted Lutnick about Megaspeed in a Nov. 5 Situation Room meeting, Axios reported. Commerce denied the confrontation happened. Lutnick reportedly resisted the restrictions, fearing they could worsen trade tensions with China.
Bessent also turned his attention to Nvidia, questioning whether the company knew its chips were being sold through shell companies to reach China. He said anyone at Nvidia who knew about such sales should be held accountable, and singled out the company's general counsel, Tim Teter.
Teter "probably should have done more oversight rather than the haranguing," Bessent said.
He added that it was unclear whether former CEO Jensen Huang knew about the alleged diversions, but argued Nvidia could prosper without its founder, much as Apple did after Steve Jobs.
Lutnick's Exit Odds Surge
On Polymarket, Lutnick's year-end departure odds reached 65% Friday, up from around 20% earlier this month, with roughly $118,000 traded on the contract. A departure announcement before December 31 also qualifies.
Senate Banking Chairman Tim Scott requested Lutnick testify Dec. 10. Reuters reported officials were discussing Lutnick's removal, but the White House said Trump "maintains complete confidence" in him.
