The clip goes on to include scenes of a migrant "caravan", warning "Who else would Democrats let in?" and claiming "President Donald J. Trump and Republicans are making America safe again!"
As of Thursday night, the ad had been viewed more than 2.2 million times, drawing widespread condemnation.
Trump, and his right-wing Republican base, have been criticised for being "racist", "hateful", "shameless", and for "fearmongering" ahead of the midterm elections in five days time, which will determine whether the GOP retains control of Congress.
"The President of the United States is working to shift the national conversation back to his base's most impassioned talking point ahead of the midterms … immigration," Fox40 news reporter Pedro Rivera tweeted.
"In this ad, essentially comparing the migrant caravan to Cop Killer Luis Bracamontes."
The video is eerily reminiscent of the infamous 1988 "Willie Horton" ad used by supporters of the George HW Bush campaign against Democratic presidential candidate Michael Dukakis and condemned as racist.
Horton was a convicted murderer who committed rape and assault while on a weekend furlough program in 1987 in Massachusetts, which Dukakis supported as the governor of Massachusetts.
The impact of the ad was described as "devastating to Dukakis" but then it later became widely regarded as the most racially problematic political campaign ad ever, as it was designed to appeal to white voters by playing on their stereotyped fears of African-Americans as criminals.
Now, scarily, Trump's attack ad has been slammed as being even worse. Unlike the 1998 "Willie Horton" ad, which was financed and run by the National Security Political Action Committee (NSPAC) as supporters of the Bush campaign and not as a part of the official campaign, Trump's Bracamontes ad bears the official endorsement of the leader of the Republican Party.
"Thirty years ago, George H.W. Bush released his infamous fearmongering, racist ad on Willie Horton," Eric Umansky, deputy managing editor of ProPublica, a US non-profit newsroom, tweeted.
"This Trump ad is worse. Far worse."