Throughout the centuries, racism has fluctuated from extreme to moderate but is still highly prevalent. The two utmost extremes led to the near extinction of dwarves and the enslavement of a large chunk of elves. Beyond that, one is more likely to be discriminated against by way of species, nation and class.
DWARVES
Dwarves are considered a peaceful people and, even with the scant records of clans having minor scraps with each other, these beliefs are largely true. Despite having been chased to near extinction by humans and had suspicion thrown upon them by elves due to their similarities with humankind, most dwarves make a concerted effort to keep any hostilities to a minimum. Because most dwarves prefer to remain within the boundaries of Dvärghem, people meeting dwarves beyond their territory are more likely to have met a hedgewitch who has spent years in historical research.
However, the act of breeding outside dwarven bloodlines is considered a disturbance of the sacred ways. This is likely due to the overall small population and that past breeding with human and elven folk is the widely-held belief behind why the mystical abilities gifted to the hedgewitches of old is now absent from those who hold the revered title in modern times.
ELVES
Whilst there is a great deal that is physically similar to humans and dwarves, large swathes of elven people find it difficult to trust either race thanks to the systematic enslaving of their people. Through the centuries, this has given them a stubborn pride in their very being, sometimes leading to the ostracisation of half-elves or full-blooded elven folk who aren't deemed as 'living an elven life'.
The nomadic elves tend to get along best with human populations of the north, forsaking anything further south as it would mean travelling through the territory belonging to the descendants of those who tried to enslave them. But this friendliness shouldn't be mistaken for complacency as they still carry a wide vein of distrust in any human they interact with, especially if said human is a spellster. They are the ones harbouring the most knowledge of their ancestors' arrival and takes pains to ensure none within their caravans forget it. They are wary of dwarves because of their appearance to humans, but most caravan elders treat such encounters with respect.
Heimatian elves, on the other hand, view themselves as above even other elves not born within their lands. Little is known of them, but most have ancestors who avoided experiencing the enslavement and emancipation other elven families suffered through. They isolate themselves and rigorously patrol their borders, letting few foreign elves pass through and none who display 'human' characteristics (this also extends to half-elves). Trading happens with the elders of nomadic elven tribes, although they seem to take things that are more trinkets than anything of use, and only at select places along the border. Those who do enter their lands are never heard from again.
HUMANS
Coming from across the seas, although the historical records of where exactly are sketchy at best, the humans of the past widely considered themselves as superior to the dwarves they encountered upon settling on the south-eastern part of the continent. This was largely because of the prevalence of magic within their people and their greater technological accomplishments. Their sense of self-importance in the view of all else led them to spread across the continent like locusts rather than living with the land as the dwarves had done. This brought them into conflict with many dwarven clans, most of whom were wiped out or fled with the death of their hedgewitches.
Those who came from the Domian Empire were especially cruel, experimenting not only on dwarven captives, but also their own people (and elves when they arrived). It was through their experiments that the infitialis metal was discovered and put into wide usage.
Ironically, the one race they mistrust above all else is their own and there has been much infighting amongst the human kingdoms who look down on each other based on the land they were raised in, often believing themselves the superior. Unlike elves, who also possess magical abilities, spellsters can be looked upon with derision or fear depending on the land. This is typically a stance of north vs south, with southern spellsters seeing themselves as superior and overseers of the mundane, whilst those in the north typically regards spellsters as a blight.