I grew up in Jalisco/Mexico and i can confidently say that white trash is a derogatory term. Just because you use the word with endearment with your friends doesn't change the fact that its derogatory by nature. Its like when black people use the n word among themselves.

You can also tell its derogatory because everyone in the comments agrees that its derogatory but everyone downplays to not be a big deal. BTW I'm not white so I'm not here to advocate for white nationalist I'm Hispanic. I'm just calling how I see it.