US designates Brazilian criminal groups as terrorist entities as Brazil rejects US tariff threats

The United States announced that several criminal organizations operating in Brazil have been classified as Foreign Terrorist Organizations. The designation triggers economic sanctions under U.S. statutes such as the Immigration and Nationality Act, the Patriot Act and the International Emergency Economic Powers Act, and may affect financial transactions and cooperation with Brazilian authorities.

In response, Brazilian President Luiz Inácio Lula da Silva rejected the tariff measures threatened by the Trump administration, stating that Brazil will not accept duties that would harm Brazilian workers. Lula defended the domestic instant‑payment system Pix, highlighted a reduction in deforestation, and called for a study of labor rights in the United States, framing the dispute as a matter of dignity and respect for Brazilian workers.