Finely dice onion.
Pat dry tofu and crumble into small pieces using your hands.
Heat up oil in a large nonstick skillet over medium heat. Add diced onion and sauté until fragrant and translucent.
Add tofu, cumin, chilli powder, smoked paprika, garlic powder, salt and pepper. Stir to combine and sauté for 1 minute.
Add tinned tomatoes and liquid smoke. Stir to combine, using your spatula to break up large pieces of tomatoes, and let mixture simmer for 5 minutes or until most of the liquid has evaporated.
Stir in nutritional yeast. Taste and adjust seasoning if necessary. Remove from heat.