Saints and Jerks
Can’t we all just get along?
Life would be a lot simpler if people knew instinctively that certain types of people just are evil. Well, sorry, that’s not how things work. People are jerks, saints and everything in between, regardless of race.
No humanoid race (excluding monstrous humanoids) is evil by default. A tribe of goblins can still be rotten to the core, sure, but that’s just one small sampling of a huge population. Races may also still possess stereotypical mannerisms; for example, Drow may be harsh and ruthless, but you’d probably be a little unforgiving too if you lived between Beholders and Mind Flayers.
Those stereotypes, however, are often all people have to go on aside from history lessons. As such, racial hatreds still exist, and people who don’t regularly deal with a certain race may very well assume a species is wholly evil without ever actually meeting even a single member of a particular race.
Simply put, your characters are just as likely to trade with an orcish merchant as they are to catch an elven arrow in the neck.