The US has imposed sanctions on Palestine Action, designating it as a terrorist group.
The US Department of the Treasury said it had "taken action" against the UK-based group, which it accused of supporting "numerous acts of terrorism since July 2020".
Supporting Palestine Action became illegal in the UK in 2025 after the government banned it under anti-terror legislation.
The group's co-founder Huda Ammori responded in a social media post, saying: "As a Palestinian and Iraqi, the fact the country which destroyed both my homelands is calling me a terrorist, is beyond hypocritical."
In a statement to the BBC, Ammori said the group's actions had "always been about saving lives", adding the ban should be a "wake-up call to anyone who cares about free speech and democracy".
Announcing the move in a statement on Wednesday, US Treasury Secretary Scott Bessent said: "Far-left extremists, their fronts, and their enablers should be on notice: We will bring the full weight of our economic tools to bear.
The US ban on the group is part of a wave of sanctions announced by the Trump administration against what it says are far-left terror organisations around the world.
Palestine Action, which used so-called direct action tactics against Israeli-linked arms companies in the UK, has been facing an ongoing legal battle to get its UK ban overturned.
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