United States designates Brazil's CV and PCC gangs as terrorist groups, threatens sanctions on Pix payments

On May 5, the United States government under President Donald Trump officially designated Brazil's criminal factions Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Foreign Terrorist Organizations. Brazil’s government condemned the move, arguing it could be used to justify extraterritorial intervention and undermine national sovereignty.

U.S. officials warned that the designation may lead to economic measures, including a recommendation from the Office of the U.S. Trade Representative to impose a 25% tariff on Brazilian imports. American payment firms such as Visa and Mastercard have also raised concerns that Brazil’s instant payment system, Pix, gives U.S. competitors an unfair market disadvantage. The designation therefore raises the risk of targeted sanctions on Pix and broader financial pressure on Brazil’s economy.