US labels Brazil's major gangs as terrorist groups amid Bolsonaro-Lula election clash

In 2026 the United States added Brazil's two most powerful criminal networks, Primeiro Comando da Capital and Comando Vermelho, to its terrorist list, framing the step as a response to growing transnational organized crime. Analysts contend the timing aligns with the Bolsonaro family's attempt to draw Washington into Brazil's domestic political battle, with Flavio Bolsonaro using the designation to accuse President Luiz Inacio Lula da Silva of being soft on crime ahead of the October election, where polls show Lula leading.

The terrorist label grants US authorities expanded powers to freeze assets, levy sanctions and impose compliance burdens on firms operating in Brazil, potentially complicating long-standing police cooperation. It also intersects with a US-Brazil dispute over the PIX instant-payment system, raising the prospect of heightened financial scrutiny. Critics warn that branding profit-driven gangs as terrorists blurs the line between crime and political violence, risking misdirected policy and further erosion of Brazilian sovereignty.

Historically, such redefinitions have served US strategic interests in Latin America, suggesting this move may be more about geopolitical leverage than genuine security concerns. While Brazil faces a serious organized-crime problem, conflating it with terrorism could undermine effective counter-measures.