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I would say it was both. Let's start with some definitions:
hate crime
noun
a crime motivated by racial, sexual, or other prejudice, typically one involving violence.
ter·ror·ism
ˈterəˌrizəm/
noun
the use of violence and intimidation in the pursuit of political aims.
It appears that this was a classic hate crime because he targeted a specific group of people in a place where that specific group congregates.
I would would tepidly call it terrorism (due to limited understanding of his motivations at this point) because it appears that his motivations were violent and had religious aims. I understand that religion and politics are technically two separate entities, but quite often they are joined at the hip (both in the US and many other countries around the world). Therefore, I believe it fits the definition of terrorism. We may later find that this attack was also motivated at influencing the US government in one way or another and that would certainly satisfy the "political aims" portion of the terrorism definition.
I'd also go so far as to say that most hate crimes are a form of "terrorism." If you and your buddies decide you want to go beat up some black guys because you hate blacks, your actions will affect the black community as a whole, not just those you beat up. It's a form of intimidation, which indirectly creates a "political" or at least "social" aim.
I understand that religion and politics are technically two separate entities, but quite often they are joined at the hip (both in the US and many other countries around the world).
Both. However, because of the publicity the shooter sought out, the point he was trying to make and because of the choice of innocents in a soft target - it's more terrorism than a hate crime.
Hate crimes usually have some kind of personal justification for choice of victim(s). Ie: the guys that lynched James Byrd knew who he was.
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