The term has entered the American vernacular, but I don't know much about it except as a humorous expression. I've heard in Ken Burn's documentary "The West" that ashes from a ceremonial pipe were intentionally spilt on the boots of General Custer during a negotiation to afflict him with bad luck, but that's about it.
Check out this previous answer that touches on the role of tobacco in many North American nations, including the calumet ceremony and associated traditions, from which our notion of the "peace pipe" is derived.