Nissan and Honda ended merger talks to forge a $60 billion car company on Thursday, pitching Nissan deeper into uncertainty and highlighting the pressure on legacy automakers from Chinese rivals upending the industry.

Japan's automobile industry urged the government to protect it from U.S. tariffs on auto imports. The U.S. market is crucial for Japanese automakers, including Toyota, Honda, and Nissan. Concerns were also raised about the impact of the tariffs on the global steel market.

Nissan Motor Co.’s credit-default swaps widened to the most among Japanese companies, overtaking both Rakuten Group Inc. and SoftBank Group Corp. after its consolidation talks with Honda Motor Co. were terminated.

Japanese automakers Honda, Nissan and Mitsubishi are dropping their talks on a business integration. The automakers said Thursday that they agreed on the move.