WASHINGTON (Reuters) -The U.S. trade deficit in goods contracted sharply in August amid a plunge in imports, government data showed.

The goods trade gap narrowed 16.8% to $85.5 billion last month, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast the goods trade deficit shrinking to $95.2 billion.

Imports of goods dropped $19.6 billion to $261.6 billion. Goods exports fell $2.3 billion to $176.1 billion.

President Donald Trump's tariffs have caused wild swings in goods imports this year, undercutting GDP in the first quarter before boosting growth in the April-June quarter.

Growth estimates for the third quarter are currently converging around a 2.5% annualized rate. The economy grew at a 3.8% pace in the April-June quarter, with a smaller trade deficit the key driver.