Lula Slams US Terror Label on Brazil Gangs as Power Grab
Brazilian President Luiz Inácio Lula da Silva has condemned the United States government’s unilateral decision to designate two of Brazil’s largest criminal organizations as “foreign terrorist organizations,” calling the move an infringement on national sovereignty and accusing the Trump administration of meddling in Brazil’s upcoming presidential election.
“We will not accept being treated like children,” Lula declared during a public event in Sergipe on May 29. “We will not accept being treated as if we were some minor republic.”
The US Decision
On May 28, U.S. Secretary of State Marco Rubio announced that the Primeiro Comando da Capital (PCC) and the Comando Vermelho (CV) would be designated as “Specially Designated Global Terrorists” immediately, with formal listing as “Foreign Terrorist Organizations” (FTOs) effective June 5, 2026. According to AP News, Rubio stated the designation demonstrates “unwavering commitment to dismantling cartels and criminal organizations.”
The PCC, founded in 1993 in São Paulo’s Taubaté prison, and the CV, established in the 1970s in Rio de Janeiro, are estimated to have over 50,000 members combined. They are primarily involved in drug trafficking, arms trafficking, money laundering, and extortion, with operations extending across South America and into Europe.
Lula’s Fierce Response
In a 435-word social media post and subsequent public remarks, Lula drew a sharp distinction between profit-driven organized crime and ideologically motivated terrorism. As reported by Al Jazeera, he wrote: “The terror caused by these organizations to communities seeks to generate profit through crime — specifically through drug and arms trafficking. These activities, however violent, must not be conflated with the ideologically, politically, or religiously motivated actions characteristic of international terrorism.”
Lula also challenged the U.S. to extradite Brazilian fugitives living in America, specifically naming former Congressman Alexandre Ramagem and businessman Ricardo Magro. “Want to fight organized crime? Hand over our people who are there in the United States,” he said, according to G1 Globo.
The Bolsonaro Connection
The timing of the announcement has fueled accusations of election interference. Senator Flávio Bolsonaro — Lula’s main challenger in the October 2026 presidential election and son of imprisoned former President Jair Bolsonaro — met with President Trump at the White House on May 26 and with Secretary Rubio on May 27. He confirmed he had requested the terrorist designations.
Lula did not mince words, calling Flávio Bolsonaro someone who “has no shame in betraying our homeland, going to the United States to ask for American intervention in Brazil,” as BBC Brasil reported.
Flávio Bolsonaro, whose campaign has been damaged by revelations of problematic business ties with a disgraced banker, defended his lobbying. “Lula was on his knees to Trump to lobby for CV and PCC, and I was there to work so they can be treated as terrorists, which is what they are,” he told reporters.
Electoral Context
The controversy unfolds against the backdrop of an extraordinarily tight election race. A May 16 Datafolha poll showed Lula and Flávio Bolsonaro tied at 45% each in a one-on-one scenario, with 9% of voters indicating null votes and 1% undecided. Security and crime are expected to be dominant campaign issues.
Political analyst Thomas Traumann told AP News that the designation appears to be a direct political intervention: “Flávio Bolsonaro’s campaign was hit by his problematic businesses with a corrupted banker, he came to the Trump administration to ask for some help and he got this one.”
Broader Implications
Brazil’s Chief Special Advisor Celso Amorim criticized the move as a “pretext for intervention,” while the Palácio do Planalto issued an official note stating that “unilateral, non-negotiated measures can weaken the fight against criminals.”
Experts warn the FTO designation could have unintended consequences. Professor Carlos Gustavo Poggio of Georgetown University told BBC Brasil that institutions like the FBI would likely stop cooperating with Brazil on these matters, as counter-terrorism falls under CIA jurisdiction, which operates secretly. This could paradoxically hinder the fight against the very groups the U.S. seeks to target.
The Brazilian government has also expressed concern about potential impacts on its financial system, including the popular PIX payment system, and the risk of sanctions against Brazilian banks or companies with inadvertent financial ties to the gangs.
What’s Next
The FTO designation is scheduled to take effect on June 5. Lula’s government has signaled it will continue to push back diplomatically while emphasizing its own anti-crime initiatives, including an $11 billion investment in the “Brazil Against Organized Crime” program. With the October election approaching, the dispute is likely to intensify, further straining US-Brazil relations and deepening Brazil’s domestic political polarization.