Jay Z thinks it was a huge setback for race relations when Donald Sterling was booted as owner of the Los Angeles Clippers because of his racist comments ... because it sends racists the wrong message.
Jay appeared on Van Jones' news CNN show Saturday night and explained his thoughts ... that when Sterling was thrown out of the franchise, it sent a message to racists to just continue that hateful thoughts, comments and actions on the QT.
Jay Z said, "Once you do that (boot him from the franchise), all the other closet racists just run back in the hole. You haven't fixed anything. What you've done was spray perfume on a trash can."
The mogul also took aim at Trump in an interesting way, saying even if the African American community is benefiting economically now, saying, "Treat me really bad and pay me well. It's not going to lead to happiness ... Everyone's going to be sick."
Trump fired back Sunday morning, saying, "Somebody please inform Jay Z that because of my policies, Black Unemployment has just been reported to be at the LOWEST RATE EVER RECORDED!"