Hedge against a Trump presidency, short the peso

Mexican artisan Dalton Ramirez works on a pinata as another depicting U.S. Republican presidential candidate Donald Trump is seen at his workshop in Reynosa, Mexico, June 23, 2015.
Daniel Becerril | Reuters

If you think the U.S. is going to go long Trump, you may want to short Mexico.

If Donald Trump wins the U.S. presidency, Citigroup analysts have a strategy they think would work as a hedge, given his anti-Mexico rhetoric.

The presumptive Republican nominee has said numerous times he will build a wall along the Mexican border and make Mexico's government pay for it, but Citi strategists say there is something else at risk.

"Some legal experts believe that it may be possible for the president to take the U.S. out of NAFTA without congressional approval. While in the end the fallback would be WTO's most favored nation status, softening the economic impact significantly for Mexico, such headlines would certainly lead to MXN (Mexican peso) underperformance," according to a report by Citigroup emerging market analysts. NAFTA is the trilateral North American Free Trade Agreement joined by Mexico, Canada and the U.S. on Jan. 1, 1994.