Heat olive oil in a medium saucepan over medium heat until it shimmers. Add minced garlic and sauté for about 30 seconds until fragrant but not browned.
Stir in the tomato paste and cook for 1 minute, stirring constantly until it darkens slightly and becomes aromatic.
Add tomato sauce, water, and apple cider vinegar to the pan, stirring well to combine into a smooth base.
Sprinkle in chili powder, smoked paprika, cayenne pepper, cumin, onion powder, sugar, salt, and black pepper. Stir until the spices are evenly distributed.
Reduce heat to low and simmer the sauce for 10–12 minutes, stirring occasionally, until it thickens slightly and the flavors meld.
Remove from heat and blend the sauce using a blender or immersion blender until smooth and glossy.
Taste and adjust seasoning if needed, adding a pinch more salt or cayenne for extra heat.
Let the sauce cool slightly before serving; it will thicken a bit as it rests.