Police were made aware of alleged racial abuse at around 07:40 BST on a tram travelling towards the city centre after a video was posted online.
Two men, aged 20 and 18 and a 16-year-old boy, were detained on suspicion of affray, Greater Manchester Police said.
The video shows a man on a tram at Shudehill being called “an immigrant” and told “get back to Africa”.
The guy told them they’re young and none too bright.
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One of the men continued to shout “get off the tram now”, as he spoke.
One of the group, who were holding beer bottles, then apparently approaches the man and