Torque is how strongly the engine is turning the crankshaft. Horsepower is the product (multiplication) of torque and rotational speed. You can have a high horsepower by producing lots of torque at low speed or a little torque at high speed.
In internal combustion engines, the amount of torque the engine can produce will vary with speed, and different engines have different speed/torque curves. Big diesels tend to produce lots of torque but are not able to spin very fast, while gasoline engines tend to be lower on the torque but can run at higher speeds so can generate lots of power.
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