I come from a mixed ethnic background and I will not tolerate “jokes” that are racist. There is a line between what’s funny and what is not. Making some witty retort will only lighten the situation and let these people think that the things they are saying are not offensive and that their behavior is okay, which it’s not. Next time they say something like that you need to just be like, “Dude, REALLY, that’s not cool.” Because sooner or later they will say something like that to the wrong person and they’ll likely wind up in a physical altercation because of it.

Have the courage to avoid them.

best wishes

They are not your “friends” ignore them totally – do not sink to their level. (I am white)