The duty on tablets & e-readers in Canada is 0% regardless of which country the tablet / e-reader was made in, according to: https://www.cbsa-asfc.gc.ca/travel-voyage/dte-acl/est-cal-en... (there's a specific duty category for tablets and e-readers)

Sales tax is 13% in Ontario, so even with that, the exchange rate should be 1.35 * 1.13 = 1.53 not the 1.60 exchange rate they use. I'm assuming shipping is already included in the price in the US as well, and shipping cost in Canada shouldn't be that much different compared to the US. I guess if the cost of shipping is higher in Canada, then that explains the USD-CAD conversion jump from 1.53 to 1.60.