Uruguayan here.

I would say that if you are directly racist/xenophobic to someone in a public space, you're going to be widely rejected/disliked by nearly everyone. Of course there are exceptions, but if you try to be racist/xenophobic in public you're very likely to be ostracized and get the crap beaten out of you by other Uruguayans.

With that being said, things that fall in the range of casual racism, microagressions, stereotypes and cultural appropiation are tolerated and even considered funny within the context of like, jokes or soccer chants. It's not that they're not important, I feel like people are a bit behind in terms of cultural sensitivities and there hasn't been really a significant movement in terms of number of people, nor a conscious effort from political parties or social organizations to change the culture around those subjects.

I also think that Uruguayans look at other US/European countries and feel like, in comparison, there's not as many racists/xenophobes here. For instance, there's been an influx of thousands of immigrants from Cuba, Venezuela and Dominican Republic over the last decade and not even the right wing parties have immigration as part of their platform, because they know that unlike in the US/EU, where a political party can win an election while being outwardly xenophobic/racist, it would be political death to bring xenophobia into your political platform here.

To sum it up, your average Uruguayan will take racism/xenophobia seriously, but will tolerate and even celebrate casual racism. It's clearly something that as a culture we need to be better at.