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In a small saucepan, sauté the onion and garlic in 1 tablespoon of olive oil over medium heat until softened and translucent. Do not let brown.
Transfer to a blender jar. Add the soy sauce, vinegar, rosemary, mustard, and Worcestershire and blend. Season to taste with black pepper. Slowly drizzle in the remaining olive oil while the machine is running until the sauce is emulsified. Add a tablespoon of water if the sauce is too thick. Set aside.
When ready to cook, start the Traeger grill on Smoke with the lid open until the fire is established (4 to 5 minutes). Set the temperature to 450F (or High) and preheat, lid closed, for 10 to 15 minutes.
Brush the lamb chops on both sides with olive oil and then season generously with salt and pepper.
Grill for 4 to 6 minutes per side, or until done to your liking (135F internal temperature for medium-rare).
Serve with the Rosemary Sauce for dipping.