On his first day in office, President-elect Donald says he plans to impose new tariffs on the country’s largest trading partners. The proposal includes a 25% tariff on all goods imported from Mexico and Canada, along with an additional 10% duty on Chinese imports. Trump argues that these tariffs will help combat illegal immigration and the flow of drugs into the country.

In this week’s episode of Capitol Gains, anchor Akiko Fujita, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman discuss why Trump is targeting Mexico, Canada, and China with his new proposal of tariffs.

“Trump wants some leverage,” said Newman. “He's going where the money is. Those three countries are the top three sources of imports to the United States.”

Newman also suggests that one reason Trump’s tariff plan may face little pushback is that many voters don’t fully understand how tariffs work. “I'm just really intrigued that voters don't seem to care that much that Trump wants to basically raise the cost of goods they buy every day,” Newman said.

According to a recent Morning Consult poll, only 25% of voters correctly defined a tariff as a fee a US company pays to the US government to import a product.

“Sixty percent thought that either the foreign government or the foreign company importing the product pays the tariff, and 15% said they didn't know," Newman added.

Watch more episodes of Capitol Gains here. Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.

This post was written by Shelby Boamah.