Brazil's government has warned lawmakers that the US’ decision to designate the criminal factions Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as terrorist organisations could open the door to US military action on Brazilian soil.

The assessment was published by the Foreign Ministry – known as Itamaraty – after Congressman Evair Vieira de Melo formally requested information on the matter.

"There is a possibility of the use of military force by the US on Brazilian territory," Foreign Minister Mauro Vieira wrote on July 1 in a parliamentary missive, adding that the designation "will not bring concrete benefits to international cooperation" and could carry "significant impacts both economically and on national sovereignty."

"Such application can occur with a wide degree of discretion, given the breadth of the terms adopted in that country's counterterrorism legislation, with serious possibilities of implications for Brazilian citizens in the financial, immigration and criminal spheres," Vieira wrote.

In another passage, Vieira reiterated that the unilateral classification "could be invoked as justification for extraterritorial actions against Brazilian institutions" and that "furthermore, there is a risk of the use of US military force against the national territory."

O Globo reported that the measure could affect Brazilian individuals, companies or organisations even where their ties to the designated factions are indirect or involuntary.

The Trump administration classified PCC and CV as Specially Designated Global Terrorists and Foreign Terrorist Organisations, effective June 5, a decision announced by Secretary of State Marco Rubio roughly a month ago.

According to Poder360, Itamaraty said Brazil received no official communication from Washington before the classification took effect, though the government has since registered its opposition.

The move came days after Senator Flávio Bolsonaro, a supporter of the designation and the likely right-wing candidate in the October election, visited US President Donald Trump. President Lula da Silva has accused Bolsonaro of stoking tensions with Washington, including over a tariff row that could see fresh levies imposed next week.

Since taking office in January 2025, Trump has taken a more active role in Latin America, threatening to seize control of the Panama Canal, launch land strikes in Mexico against cartels, and stage a “friendly takeover” of Cuba – while already imposing an oil blockade on the island. On January 3, US forces captured former Venezuelan president Nicolás Maduro in a military operation, prompting his deputy Delcy Rodríguez to take power as interim leader; she is now governing under de facto US tutelage.

On July 1, the US announced sanctions against two Brazilian nationals, three São Paulo-based companies and a Portuguese firm suspected of laundering money for PCC, which the Trump administration described as now "the largest transnational criminal organisation in the Western Hemisphere."

The dispute has sparked a flurry of diplomatic engagement. Defence Minister José Múcio will travel to Peru on July 8 to meet US Under Secretary of War Elbridge Colby on the sidelines of the Conference of Ministers of Defence of the Americas.

Before departing, Múcio is due to meet President Lula to align Brazil's position; the Presidential Palace's central concern is whether Washington intends any intervention or direct action on Brazilian territory under the pretext of combating the factions.

Lula has instructed Múcio to strike a firm tone in defence of national sovereignty while presenting the results of Brazil's own efforts against organised crime in recent years.

Brasília maintains that existing legal-assistance agreements, intelligence-sharing and police cooperation already give both countries effective tools against transnational criminal groups, making the terrorist designation unnecessary to strengthen joint action, the ministry's document said.