Most Helpful Guy
It's definitely the kind of humour male friends use towards one another. I know as I have a buddy from Algeria. 90% of our friendship is insult based humour, usually based on race. He may be trying to leave a message, he may also just like insult humour. If you feel offended I'd tell him to piss off.
Most Helpful Girl
It means he's kind of racist and therefore probably thinks less of you as a human. I don't know him or the extremity of his jokes, so all I can say is that you should be cautious and consider moving on.
If you don't find his jokes too offensive and he isn't a possible kkk recruit, just tell him how you feel!