Sadly, Tolkien was a philosemite. He believed jews were unjustly persecuted and remained strong in the face of persecution, so he made them into the Dwarves.
Regardless of how he interpret those, he is wrong and he knows it, and he didn't invent them, as these are spirits from European Paganism, so we might reclaim what is ours and give them their proper meaning:
https://en.wikipedia.org/wiki/Dwarf_(folklore)
Dwarves might either be just a type of elementals like Elves, or a race of Demons like Bes, who are protectors of children (ie., halflings). Varg and his wife Marie have yet another interpretation, that the myths about dwarves represent a child that has found his past life. They go to the underground (burial mounds, that were a rampant type of burial in Pagan Europe and even America) to retrive "gold" (the dead was buried with their belongings), and thus retrive their past-life mind, becoming a "child with a grownup's head", ie., a dwarf. This is debatable though, but makes sense.
Plus, kikes have never been a warrior race, ever, other than coward acts of terrorism against women and children in the Roman Empire. Darker and shorter than Elves, Dwarves have much more in common with Spartans or Souther Europeans in general, being invanded and misplaced by orcs and lizards stealing their civilization. The bickering of Dwarves (southern, darker and shorter) with Elves (northern, fairer and slender) makes a lot more sense according to Tolkien's own lore. Also Talkien is a fan of Rome which is very ironic given how Rome fucked up the kikes.