Police were called to Durham Street, Hull, at shortly after 4.30pm Wednesday, October 10 with reports the man with the knife had been seen threatening another man.
The victim – who drove away in a white Ford Focus – was not injured as a result of the incident.
The 23-year-old suspect remains in our custody, assisting us with our enquiries.
If you have information about the incident and are yet to speak to police about it, please call 101 quoting incident number 16/106842/18.
If you’d rather remain anonymous, call Crimestoppers on 0800 555111.