Start by peeling and thinly slicing the red onion into rings. Aim for even slices to ensure they pickle uniformly.
In a small saucepan, combine the white vinegar, sugar, salt, bay leaf, allspice berries, whole cloves, and the dried chile pepper.
Place the saucepan over medium heat. Stir the mixture occasionally until the sugar dissolves completely. You don’t need to bring it to a boil; just heat it enough to blend the flavors.
Once the pickling liquid is ready, pack the sliced onions into a clean glass jar. You may want to press them down gently to make room for all the onions.
Carefully pour the hot pickling liquid over the onions in the jar, ensuring they are fully submerged.
Allow the jar to cool to room temperature, then seal it with a lid and place it in the refrigerator.
For the best flavor, let the pickled onions sit for at least 30 minutes before serving.