These people aren't breaking the law when they cross the Canada US border inside their territory. According to the treaty which defines the Canada US border in this area, these people have a "legal" right to cross the border freely. The breaking the law part happens when these people move goods off their territory and into Canada.
The Mohawk "Nation" is less recognized internationally than Palestine. Effectively these people are just as nationless as Palestinians unless they choose Canadian or American citizenship.
Canada and the US could adopt a similar model as Israel to deal with these people and just militarily occupy their land. I'm sure that would involve demolishing homes, building walls, putting up military checkpoints, detaining people and forcing people to live in open air prisons. Some of these people are armed and would likely resort to terrorism. But we could also adopt the Israeli model to deal with that too. We could assassinate their leaders, and periodically invade and level their infrastructure. Our actions might result in some collateral damage, killing hundreds or even thousands of innocent civilians, which we could justify because it would end the smuggling problem. The world might think less of Canada for treating these people the same way Israel treats Palestinians and ignoring international laws, treaties and conventions. The UN might even pass resolutions against us which we could ignore. But Israel has set an international precedent for dealing with nationless people like the Mohawks which Canada could use to deal with this smuggling problem. As a bonus we could also annex their land and build settlements for our citizens. Since Canda has more firepower, these people would have little recourse except illegal terrorist activities. If some of the thousands of angry natives started firing rockets and mortars at us over the walls, that would justify Canada bombing the hell out of them. Since CB is an ardent supporter of Israel, I'm sure he would support Canada using an iron fist to deal with any Mohawk resistance/terrorist activity resulting from Canada illegally seizing their land. Otherwise he'd be a hypocrite...
(Sorry I had to point out the parallels)
I'd prefer that we treat these people as equals, recognize their rights and treat them fairly in accordance with our legal treaty obligations. I would expect the Mohawks to behave the same way. The current smuggling problem is a small price to pay for peaceful co-existence until we negotiate a new treaty which deals with this and other issues, like citizenship.
In the meantime, Canada and the US should insist that the Akwesasne Mohawk Police Service crack down on smugglers:
Akwesasne.ca
Also this link is worth reading:
Akwesasne.ca