Baldwin is now in custody at the 6th precinct and charges are pending.
A Baldwin relative was holding a parking spot for the actor, but another driver pulled in first, cops said.
No charges have been filed yet, but police said they expect Baldwin will be charged with misdemeanor assault.
Baldwin was released from a nearby precinct in Manhattan's Greenwich Village neighbourhood about two hours after the incident.
Witnesses tell us the actor got into an argument with another man over a parking spot near 10th Street and 5th Avenue. He also has "Match Game" and talk show "Sundays With Alec Baldwin" on ABC, which did not immediately have a comment.
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The actor is famous for his temper; in 2007, an angry voicemail Baldwin left for his daughter, Ireland, was leaked onto the internet and went viral.
Baldwin, who now hosts the weekly television talk show "The Alec Baldwin Show", in 2012 denied punching a photographer who was trying to take photos of him with his then-fiancee, yoga teacher Hilaria Thomas. Said Trump: "I wish him luck".
Baldwin also appeared in the Hollywood films Beetlejuice, The Departed and Glengarry Glen Ross.
Baldwin walked silently past reporters and photographers to a waiting SUV on Friday afternoon. Baldwin lives in the area.