A US immigration officer shot and killed an American woman in Minneapolis on Wednesday, triggering widespread protests and sharp criticism from local and state leaders who rejected federal claims that she was a “domestic terrorist”.

The woman, identified by local media as 37-year-old Renee Nicole Good, was shot at close range after Immigration and Customs Enforcement (ICE) agents surrounded her vehicle, which they said was obstructing their path during an enforcement operation.

Video footage circulating online appears to show a masked ICE officer firing three shots into a Honda SUV as it attempts to move away. The vehicle then veers out of control and crashes into parked cars while bystanders shout at the officers. Good’s body can later be seen slumped inside the wrecked vehicle, covered in blood.

The Trump administration quickly claimed Good had attempted to kill the agents by using her car as a weapon. Minneapolis mayor Jacob Frey dismissed that account as “bullshit” and called on ICE to leave the city.

Thousands of demonstrators gathered in freezing conditions across Minneapolis, carrying placards reading “ICE out of MPLS”, amid growing anger over federal immigration raids.

The Department of Homeland Security (DHS), which oversees ICE, said on social media that the officer fired “defensive shots” after the victim tried to run him over. DHS secretary Kristi Noem described the incident as “domestic terrorism”, alleging Good had been “stalking and impeding” ICE officers throughout the day and had “weaponised her vehicle”.

Minnesota governor Tim Walz condemned the federal response as “propaganda” and promised a “full, fair and expeditious investigation”.

Witnesses reported hearing three gunshots and described a chaotic and graphic aftermath. One onlooker told local media that a passenger escaped the vehicle covered in blood, while another said a man identifying himself as a doctor was prevented by officers from reaching Good.

The shooting occurred amid protests against immigration enforcement in southern Minneapolis. ICE agents have played a central role in President Donald Trump’s renewed drive to deport undocumented migrants during his second term, despite opposition from many local authorities.

Last summer, DHS launched a recruitment drive to hire 10,000 additional ICE officers, prompting criticism that new agents were inadequately trained. ICE currently employs around 6,000 officers nationwide.

Good’s mother, Donna Ganger, told the Minnesota Star Tribune that her daughter “was probably terrified” and insisted she was not involved in any organised action against ICE.

Federal authorities said up to 2,000 immigration officers were deployed in Minneapolis for enforcement operations. The incident follows another fatal shooting in September, when an ICE officer in Chicago killed an undocumented immigrant after alleging the man attempted to evade arrest by driving at officers.