Danny Trejo's Fourth of July parade bust-up was sparked by his fears he was being targeted in a racist acid attack

He has now said his furious reaction was in retaliation to a "targeted" attack against him and his friends because they are of Mexican descent - and after he heard someone shout at attacker was hurling acid at the vintage car he was in as part of the parade.

Danny told TMZ: "I'm just sad that there's still people like from the '50s and '60s that still feel the same (racist) way, because no one else was targeted."

His friend, who was also involved in the July 4 fistfight, backed the actor's claim they were targeted simply because of their ethnicity, pointing out that no one else in front or behind them were affected.

Danny and his friends had been celebrating Independence Day when a fellow parade-goer chucked a water balloon at his lowrider convertible.

The actor said he leaped out of his car when he heard someone yell: "It's acid!'"

He told TMZ when he went to look at the hood of his vehicle, someone allegedly hit him with a water balloon.

Danny added: "I am so sad. I'm sad that I behaved the way I behaved. I'm so sad that grown men gotta throw water balloons to enjoy a day."

But he stressed the reason he "panicked" was because of the belief that acid had been poured onto his car.

In a video chat with TMZ with Danny and his pal, his friend showed off bruises left on his arms from the fight, stating their attackers were "stomping on [his] arms" and "holding (me) down".

Danny said he was feeling "alright", adding: "They couldn't hurt me."

He added: "I would be embarrassed if I attacked an 80-year-old man and he's still talking and laughing."