The Department of Homeland Security (DHS) said an officer shot a man in the leg in Minneapolis after being attacked with a shovel as he tried to make an arrest of a Venezuelan migrant who entered the US illegally.
After the incident, Homeland Security Secretary Kristi Noem said the agent was "beat up" and "bruised", adding ICE officers were "following protocols that we have used for years" from before the Trump administration.
The man's family has disputed the DHS' version of events in an interview with the Washington Post, saying he was shot in the doorway and not during a scuffle in the street.
Minneapolis is the fifth major city to be targeted in Trump's immigration crackdown after his election pledge for the biggest deportation operation of undocumented migrants in history.
The campaign, which remains popular with most Republicans and especially Trump's Make America Great Again (Maga) supporters, has sparked a fierce backlash in the Democrat-led cities where operations are taking place.
On Saturday, hundreds of demonstrators confronted and chased away a small group attempting to hold a pro-ICE and anti-Islam rally.
Counter-protesters converged on the event organised by far-right activist Jake Lang, who was pardoned by Trump after being charged with crimes related to the US Capitol riots on 6 January 2021. Lang had vowed to burn a Quran outside City Hall, however it is not clear if he carried out his plan.
Minnesota is home to the largest community of Somali immigrants in the US, the majority of whom are US citizens. The president has said they should "go back to where they came from" and described the community as "garbage". He launched the immigration crackdown in December after some Somali immigrants were convicted in a massive fraud of state welfare programmes.
Minnesota Governor Tim Walz recently said he would end his bid for re-election amid the fraud scandal. But he has accused Trump and his allies of seeking to take advantage of the crisis to play politics.
Against this backdrop, Trump has threatened to invoke the Insurrection Act, a 19th Century law that allows active-duty military personnel to be deployed for law enforcement within the US, to quell the city's resistance to his immigration campaign.
On Friday the Justice Department opened a criminal probe into the Democrats Walz and Minneapolis Mayor Jacob Frey, accusing them of attempting to impede federal immigration operations. Walz said the move was "weaponising the justice system against your opponents".
In a post on social media, Trump called protesters in the city "traitors, troublemakers and insurrectionists" and accused them of being "in many cases, highly paid professionals".