Commodities March 11, 2026

Jose Antonio Kast sworn in as Chile’s president, marking a sharp rightward turn

Inauguration in Valparaiso draws regional leaders as Chile faces security worries, economic sensitivities and geopolitical strains

By Avery Klein
Jose Antonio Kast sworn in as Chile’s president, marking a sharp rightward turn

Jose Antonio Kast took the presidential oath in Valparaiso, inaugurating what observers describe as the most significant shift to the right in Chile in decades. The ceremony, attended by several regional leaders and Spain's king, comes amid heightened public concern over crime and economic performance, a recent fatal shooting that underscored security anxieties, and emerging international frictions linked to a proposed Chinese undersea cable and wider geopolitical tensions.

Key Points

  • Jose Antonio Kast was sworn in as Chile's president in Valparaiso, with attendance from regional leaders and Spain's King Felipe - impacts diplomatic relations and regional politics.
  • Kast prioritized security, migration and market-friendly economic measures; these priorities affect public safety policy, immigration enforcement, and sectors tied to economic reform including mining and markets (Chile is a leading copper producer).
  • The transition unfolded amid geopolitical strains - notably U.S. pressure over a proposed Chinese undersea cable and market volatility linked to the Iran war - with implications for trade, telecommunications and investor confidence.

Jose Antonio Kast was sworn in as Chile's president on March 10 in Valparaiso, the coastal city that houses the nation's Congress, marking what many see as the most pronounced move to the right in the country in decades. The transfer of power was attended by regional leaders and dignitaries, reflecting the ceremony's diplomatic significance.

Among those who traveled to Valparaiso for the inauguration were Argentina's Javier Milei, Ecuador's Daniel Noboa and Paraguay's Santiago Pena. Spain's King Felipe also attended the ceremony, underscoring the international attention surrounding the change in Chile's leadership.

Kast replaces left-wing President Gabriel Boric, having previously lost to him in the 2021 election. He assumes office at a moment when Chilean public opinion is reportedly focused on rising crime and concerns about the economy. Those anxieties were brought into sharp relief on the morning of the inauguration when a shooting in the southern city of Puerto Varas left one police officer brain dead. In response to the incident, Kast said he would act decisively and dispatched his new security minister, Trinidad Steinert, to Puerto Varas after the ceremony concluded.

Asked about the shooting earlier in the day, Kast told reporters: "There's going to be a before and an after. Whoever attacks a (police officer) attacks Chile." He added, "We're going to find them, judge them and apply the full force of the law." The comments frame security as an immediate priority for the new administration.

On policy, Kast has pledged a tougher stance on migration and crime, combined with measures intended to stimulate economic growth through deregulation, spending cuts and market-friendly approaches. Chile, a global leader in copper production, elected Kast during a period described in reports as an economic upswing. Still, his inauguration coincides with broader market uncertainty tied to the Iran war, which observers say is rattling global markets.

The political handover was not without friction. The transition featured public tension between the incoming and outgoing administrations related to intensified U.S. pressure over a proposed Chinese undersea cable project. That dispute highlights the wider geopolitical context that Kast inherits, one that observers say mixes economic, security and diplomatic challenges.

Guillermo Holzmann, a political analyst at the University of Valparaiso, said Kast "will have to manage an increasingly challenging international geopolitical landscape," citing economic risks from the Iran war, the U.S.' security strategy in the region and China's influence in Latin America. Holzmann added that such choices "will require sophisticated diplomacy and strategic medium- and long-term vision."

Domestically, Kast swore in his ministers during the inauguration, but faces a divided Congress that could slow or block parts of his policy agenda. Nicholas Watson, managing director at the consultancy Teneo, said rapid and effective progress on Kast's three priority areas - security, immigration and the economy - will be crucial. Watson also noted that "a barrage of initiatives is expected over the next three months," signaling an active early period for the administration if it seeks to implement campaign commitments quickly.

The incoming government thus confronts an intertwined set of challenges: an immediate security incident that underscores domestic worries, an economic backdrop influenced by commodity positions and global risk, and external diplomatic pressures that may shape policy choices in the months ahead.

Risks

  • Heightened geopolitical tension over the proposed Chinese undersea cable, amplified by U.S. pressure, could complicate diplomatic and economic decisions - relevant to telecommunications and international investment flows.
  • The Iran war is described as rattling global markets, posing economic risk that could affect commodity prices and broader market stability - relevant to mining and export-driven sectors such as copper.
  • A divided Congress may impede the swift passage of Kast's agenda on security, immigration and economic reforms, creating political uncertainty that could slow implementation of policies affecting public safety, fiscal plans and business regulation.

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