What if I start calling my "Latino" friend white?
That's a little weird. Why would you do that?
My friend told me it refers to someone who sells drugs.
Why would you say that to your friend? It seems like it would just hurt them, and you should apologize.
I'm fine with it.
He might not share your easygoing attitude about referring to him using a racial stereotype. How would you expect him to react to being spoken to like that?