Californian Governor Arnold Schwarzenegger has caused controversy in America after it was alleged he smoked a banned Cuban cigar.

Cuban cigars are banned in the U.S. but it is claimed the Terminator actor purchased the prized smoke on a trip to Canada. He was travelling to Ottawa airport when he made a detour to a hotel to pick up some cigars.

When asked if was a banned cigar, an aide replied, "There's no way of telling now because he smoked it."

U.S. citizens who violate trade laws can face a jail sentence.