Are Jews racist against non-Jews?
Whether or not there are Jews who are racist against non-Jews, the Torah places value on all human life. This is, after all, the message of Sefer Yonah where G-d sends a prophet to a non-Jewish nation to provoke them to repent and be spared destruction for their sins.
At the same time Torah teaches that Jews have a special relationship with G-d which non-Jews do not. As others have mentioned a non-Jew may joint the covenant and gain such a relationship, but since there is an ethnic component some people are going to be uncomfortable about this notion.
What matters is the truth value of our special relationship with Hashem (and the various rights and responsibilities which accompany it) rather than whether it can be branded with a derogatory name. Terminology can help us analyze and evaluate ideas, or it can be misused to hastily and thoughtlessly lump together seemingly similar concepts without paying attention to very real and significant distinctions.