Sacha Baron Cohen's controversial new show has claimed its first causality, with a US politician resigning after appearing in episode two of Who Is America?

A Republican state representative in Georgia, Jason Spencer used racial slurs and dropped his trousers while taking part in fake anti-terrorism exercises and an instructional video.

Cohen, disguised as Israeli anti terrorism expert Erran Morad, instructed Spencer in a series of "self-defence" methods which resulted in the politician screaming the N-word and mocking Chinese people.

In one instance, Cohen explained to Spencer that, if he was ever kidnapped, he should yell "the N-word". Spencer immediately screamed it repeatedly.

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"Are you crazy? The 'N-word' is noony, not this word, this word is disgusting," an in-character Cohen replied with disgust.

Spencer also bared his buttocks in an apparent attempt to ward off would-be terrorists while screaming: "I'll make you a homosexual!"

The politician, who previously threatened to take legal action if the episode aired, announced he would resign on July 31 after pressure from other politicians, THR reported.

Spencer told The Washington Post he regretted his participation, describing it as a "ridiculously ugly episode".

Spencer joins a long list of politicians, including Sarah Palin and Bernie Sanders, who have been tricked by Cohen's controversial new Showtime series.

In last week's episode, the comedian managed to dupe prominent pro-gun advocates into spruiking a "Kinder-Guardians" program.