The vehicle parked on 13th and K street in Washington is pictured sending plumes of smoke into the sky near Trump's parade route.
As the new president made his way down Constitution Avenue with a military escort, the limo was set ablaze only streets away, outside the Washington post building.
It was reported that a 'stampede of terrified people' ran for their 'lives' after the limo's tyres exploded.
Anarchists screamed "burn the f****r down" in a scene that was compared to a "war zone".
The limo was rumoured to be Jesse Jackson's but reports have since confirmed that the claims are false.
Protesters vandalised the vehicle earlier that day - smashing its windows in and reportedly leaving a 'bottle rocket' inside.
DC Police Department has confirmed arrests have been made for "acts of vandalism and destruction of property".
Observers said the disorder appeared to be organised, with the black-clad group splitting from a larger protest before launching the wave of vandalism.
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