Brazilian President Luiz Inacio Lula da Silva delivered sharp criticism Friday against the United States’ move to classify two major Brazilian criminal organizations as terrorist groups, denouncing the action as improper meddling in his nation’s domestic matters.
“We will not accept being treated like children, we will not accept being treated as if we were a banana republic,” Lula declared during a public appearance Friday, mentioning “a certain Marco Rubio, who said that our criminals are terrorists and that Americans can intervene.”
The announcement came Thursday when U.S. Secretary of State Marco Rubio revealed a new policy targeting Brazil’s largest criminal organizations with terrorist designations, potentially allowing for more forceful interventions. This decision followed lobbying activities in Washington conducted by the sons of far-right former president Jair Bolsonaro.
Brazilian officials characterized the designation as harmful to productive relations and a challenge to national sovereignty, while legal analysts cautioned about potential consequences for companies doing business in Brazil.
The U.S. embassy in Brazil did not immediately respond to a request for comment.
The two major organizations affected by the U.S. action, Comando Vermelho (CV) and Primeiro Comando da Capital (PCC), originated as drug trafficking operations but have broadened their activities into additional economic sectors, including extortion and controlling local supply networks in certain regions.
Legal analysts noted that due to this extensive reach, corporations might face indirect risks if they conduct operations in areas where these groups hold sway, even without direct connections.
Legal firms distributed advisories to business leaders Friday cautioning that the U.S. classification could heighten oversight of financial institutions and corporations working in sectors including agribusiness, energy, mining and telecommunications.
“Scrutiny on financial institutions is also expected to tighten. Recent examples in Mexico show how quickly the situation can escalate, with local banks cut off from the financial system,” one report by local attorneys said.
A separate analysis by international lawyers warned that companies that operate across Brazilian territory face an even steeper challenge, particularly those in agribusiness and the energy, mining, and telecommunications sectors, where exposure to the criminal factions’ economic orbit can be difficult to map and harder to avoid.
Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) are both set to be formally listed as Foreign Terrorist Organizations (FTOs), effective June 5, 2026.
Financial markets displayed a subdued initial reaction, though several banking stocks declined Friday, with Brazil’s primary Ibovespa index closing down 0.7%.
During a Washington meeting with Trump this week, Brazilian Senator Flavio Bolsonaro, who is organizing a presidential campaign with his father’s support, ex-President Jair Bolsonaro, revealed he had requested the U.S. designate these organizations as terrorists.
His brother Eduardo Bolsonaro, who took part in the Washington discussions, stated that the decision had been under review in Washington but was postponed due to Lula’s policies.
Speaking with Reuters, Eduardo said he was not focused on whether such measures could sway votes in the Brazilian business community. “I am concerned with the interests of the Brazilian people. I want to destroy the Comando Vermelho, the PCC, so that Brazilians don’t go out to buy bread at the bakery and end up taking a bullet to the head.”
Lula’s administration had worked to prevent such classifications, worrying they might create pathways for future U.S. military involvement or penalties against financial institutions that unknowingly conduct business with organization members.
During his comments, Lula, who is seeking re-election in October, criticized Senator Bolsonaro for “betraying our homeland and going to the U.S. to ask for intervention in Brazil.”
Lula himself had also met with Trump at the White House to discuss ways to combat organized crime, but said at the time they did not discuss the possibility of Washington designating the CV and PCC gangs as terrorist organizations.
Friday, Lula described the U.S. decision as “disappointing” and promised to maintain focus on the domestic battle against both organizations, which control the drug trade across much of Brazil and have strengthened connections throughout Latin America.
