Proposed Republican tax change would lead to spike in costs for Canadians who invest in U.S. securities

"Canadian investors holding U.S.-listed securities could see a sudden spike in the amount of tax they owe under a recent U.S. bill that has been tabled as a retaliatory measure against what it calls “discriminatory taxes” of foreign countries, including Canada’s digital services tax.

If passed, the proposed legislation would add 5 percentage points to the withholding tax rate each year for four years on certain types of U.S. income for anyone living in a country that imposes a tax that the U.S. considers discriminatory or extraterritorial for U.S. citizens or corporations. The additional 20-per-cent withholding tax would remain in place as long as the other country’s disputed tax is in effect.

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https://www.theglobeandmail.com/business/article-proposed-republican-tax-change-would-lead-to-spike-in-costs-for/

Yeah, this will probably drive some money away from the US, as it'll just directly reduce yields, even if invested in an ETF that just holds US securities.