Minister of Trade Regulation no. 40 of 2022 which prohibits the Import of used clothing in Indonesia is the government's response to the economic challenges that have emerged after the COVID-19 pandemic. This policy aims to protect the local textile industry as well as micro, small and medium enterprises (MSMEs) which are highly dependent on trade in new goods. The government is also trying to reduce the influx of Imported second-hand clothing which is sold at lower prices, but does not meet health and safety standards. This policy is expected to maintain the continuity of the local industry and protect Consumers from potential health risks due to used goods that do not meet the qualifications. However, this research identifies a number of challenges that arise in implementing this policy. One of the main findings is the high demand for thrift goods post-pandemic, which shows a change in Consumer behavior who are increasingly aware of the Importance of sustainability. Consumers now prefer second-hand goods as an affordable and environmentally friendly alternative. This causes the practice of thrifting to continue to grow even though there are Import restrictions. Even though the aim of this policy is positive, hasty implementation without taking into account local market dynamics could hinder the growth of the thrifting business which is increasingly in demand. Business actors experience difficulties in obtaining quality used goods stock, while local goods stock cannot fully meet market demand. Therefore, this policy needs to be reviewed with a more comprehensive and collaborative approach between the government, business actors and the community. With an inclusive approach, this policy can be more effective in achieving its goals without hampering the sustainable development of the local thrifting sector.