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This is exactly the right call. The Trump administration has acted swiftly to cut off funding and resources to these groups that have already infiltrated the U.S. after Brazilian socialist leadership chose to lobby in favor of them instead of leading the crackdown. As one in four Brazilian lives under the thumb of these narco-terrorists, any government that fails to take action against them is complicit in their violence.
This move will do more harm than good. First, these designations pose a significant threat to Brazilian sovereignty. Second, they will undermine the very cooperation needed to dismantle these criminal organizations now that intelligence-sharing will shift from Brazilian state-level forces who actually fight these groups on a daily basis to a federal level, becoming far more confidential.