Sorry to hear the complications and cost of legally moving a couple pounds of 100yr old (approx.) steel and wood across an imaginary line have cause you to cancel the deal.
Lugers live in a bubble, or more precisely a series of bubbles, each one lifting the market value of the guns, until it bursts and prices plateau for a time, until the next bubble comes along and raises them to the next level.
A $500 Luger 20 years ago could be a $1500 Luger today. (of course, this only applies if you plan on selling it,,,)
I think, even if it cost you $900 to get it in your hands, you wouldn't be terribly gouged at todays market prices, and if you owned it for a few years, very likely it would bring even more. Clearly, your friend in Canada was trying to do you a favor. (a really nice favor!).
Might it not be worth spending the extra needed to import the gun, in the name of your friendship, looking past the temporary cost/profit consideration, which WILL change every few years?