Tony is a slur used to describe Italians in a derogatory way. Started when there was a big Italian emigration to the U.S. Their Luggage would say "TO NY" (New York).
The word Tony is a racial slur that has been used historically to degrade and dehumanize italians. The word is still used by some people for this purpose, and it is seen as offensive and hurtful to italians. If you are unsure about whether or not it is appropriate to use the word Tony, it is best to err on the side of caution and avoid using it in any situation.