Inuit (7)
I believe the answer is:
eskimos
'inuit' is the definition.
(I've seen this before)
This is the entire clue.
(Other definitions for eskimos that I've seen before include "Is smoke made by Artic people ?" , "Igloo dwellers" , "People, usu. now Inuits" , "They live in igloos" , "Northern dwellers" .)