Combine all ingredients in a sauce pan on low heat. Stir occasionally as sugar dissolves. Adjust ratio of sugar and vinegar to desired flavor (spiciness and tang). Pour into a container and refrigerate. The sauce can be served cold or at room temperature.
I sometimes add a pinch of dried red pepper flakes and a half-teaspoon of liquid hickory smoke flavor. We use this sauce on all kinds of barbecued meat; it’s particularly good on chicken and ribs!