The Lula administration in Brazil has tried to avoid such designations because it could open a path for military action by the US in Brazil or sanctions against banks that unknowingly do business with gang members.

While the FTO designation was planned to take effect in June, the US state department designated the gangs as “Specially Designated Global Terrorists” on Thursday, Rubio said in a statement.

Rubio said the gangs were two of the “most violent criminal organisations in Brazil” and their influence and networks extend across the region and into the US.

“The Trump Administration will continue to use all available tools to protect our nation and our national security interests by keeping illicit drugs off our streets and disrupting the revenue streams funding violent narco-terrorists,” Rubio said.