In all fairness the price disparity applies to all other goods as well. I travel frequently for business to the US and make many purchases down there (when I can bring them back on the plane) because of the price and tax difference. There are very few items that are cheaper or at part in Canada compared to the US. One surprising one is camera equipment, videocameras is a different story.
I'll give you an example of disparity, a while back there was this big issue with cars. The same car would cost 20 to 30% more in Niagara Falls, Ontario compared to Niagara Falls, NY with the Canadian dollar at parity. It would cost about 1-2k to get the car safety-retrofitted and legalized here in Canada (including duties and taxes). All in, you would still save 5-15k depending on the car.... and BTW, you have greater selection of models and features in the US. However, with a few exceptions, car manufacturers would only honor the car warranty in the country of purchase. Not a lot of people wanted to drive a car without a warranty.
Another example, there have been endless debates about the Festool vs Bosch jigsaws because they are of similar quality, but one is half price... in the US. Well, here in Canada, there is typically a 50 dollar difference between the jigsaws and the parts for one are more readily available (I'll let you guess which one. Name starts with F).
An the really ridiculous one... you even noticed that magazines and books have a price in US and Canadian dollars. Well, when we were at parity a few years ago. Book sellers would refuse to adjust the price. They were charging cover price (Canadian dollars).
Unfortunately, for our pockets Canada is not viewed as an extension of the US market by retailers. This is a godsend in many other ways. The cost of doing business in the US is that you have to lower prices and make it on volume. It is not really that goods are more expensive in Canada. They are lower in the US to remain competitive.
All in all, I am happy that Festool is in Canada. Dan is a great dealer.. but he needs to move to Ontario (with his tools).