Kingspan's logo appeared on Mercedes cars for the first time at the Saudi Arabia Grand Prix.
The sponsorship deal between Mercedes and Kingspan ended a week after it was announced.
The survivors of the June 2017 tragedy described the deal as "truly shocking".
Mercedes said that both parties decided that it was not appropriate for the partnership to move forward at the moment.
We have agreed that it will be discontinued immediately.
Kingspan said that they were aware of the sensitivities raised in recent days.
Lewis Hamilton distanced himself from the arrangement over the weekend, suggesting that the Kingspan logo might not stay on his car.
The news of the sponsorship agreement shattered the group of survivors and families. The group wanted Mercedes to immediately sever their relationship with Kingspan.
Kingspan says that only 5% of the insulation in the block was made up of K15 insulation. The inquiry into the fire found that the exterior cladding was the main reason for how quickly it spread.
72 people were killed in a fire in June of last year.
Both Kingspan and Mercedes said their deal was based on sustainable practices. The company's logo appeared on Mercedes' cars for the first time at the Saudi Arabia Grand Prix.
