For the sauce: In a food processor, combine the tomatoes, onions, garlic, capers, chile, sugar, paprika, and salt. Process until slightly chunky. Pour the sauce into a medium saucepan and bring to a simmer over medium heat. Cook for 25 minutes until thickened. Season with salt and smoked paprika, to taste.
For the steaks: Place a grill pan over medium-high heat or preheat a gas or charcoal grill. Drizzle the steaks on both sides with olive oil. Season on both sides with salt and pepper. Grill for 5 to 6 minutes each side for medium-rare. Let the steaks rest for 5 minutes.
Slice the steaks across the grain into 1/4-inch thick slices and serve with the sauce.