The United States designates Brazil’s two largest criminal gangs—the First Capital Command (PCC) and the Red Command (Comando Vermelho, CV)—as foreign terrorist organizations. The move is announced by U.S. Secretary of State Marco Rubio and is described across outlets as a step that follows prior threats by the Trump administration. U.S. officials and related reporting link the designation to a broader campaign against drug trafficking and organised crime, including the expansion of legal and enforcement tools available under terrorism authorities.

Brazil’s government and President Luiz Inácio Lula da Silva strongly oppose the decision. Bloomberg and other reports say it is likely to renew tensions between Washington and Brasilia, and that Lula views the move as a threat to sovereignty that will not improve anti-drug efforts. Several outlets also connect the timing to Brazil’s October presidential election, arguing that domestic political figures aligned with former president Jair Bolsonaro benefit from the designation. Experts cited by multiple sources warn the listing could complicate law-enforcement cooperation, increase scrutiny of financial transactions, and raise compliance burdens for companies operating in Brazil.

The designation takes effect June 5, and while the groups operate in Brazil, sources note they do not operate in the United States.