The Parades Commission has refused permission for bands and lodges to return past the north Belfast interface area on 12 July.
But a joint statement from the DUP, UUP, TUV, PUP and UPRG hit out at the determination and called for action from the PUL community.
Speaking to UTV, DUP First Minister Peter Robinson said he was not going to list the measures that would be taken, but that the first steps - including abandoning the talks - were being made clear.
"There will be protests," he said.
"And we have already indicated that, as political leaders, we don't intend to have any further contact with the Parades Commission - they don't listen to us any way."
The DUP leader further branded the Parades Commission "completely incompetent".
He said: "This decision, I think, defies all logic.
"Of course nationalists and republicans will be jumping up and down applauding them, but those of us who want to have a peaceful summer are outraged by their decision."
Mr Robinson's comments came after the joint unionist statement, which claimed that the message sent out by the Parades Commission was simple.
"It has shown that the Commission members place no value on a relationship with unionism and have treated our advice with contempt," the statement said.
"It has turned its face away from the evidence including from the PSNI. It is regrettable, but so be it.
"As a consequence we, as leaders of the unionist community, see no value in continuing contact with a Parades Commission that does not listen and is immune to reason."
Political action in tandem with peaceful and lawful protests is the path we must follow.
Last year, the same determination saw protests on the streets and violence flared.
Both the DUP and UUP have said that they are ending their participation in the leaders' talks, branding them "fruitless", while joining with the TUV, PUP and UPRG in response to the situation.
"We have bound ourselves together to defend our community and culture from the callous disregard of those who pander to republican demands," the joint statement adds.
"We will not see our communities destroyed, police and civilians injured, and young people left with criminal records."
The statement claims that the Parades Commission has rewarded "republican threats of violence".
Northern Ireland Secretary of State Theresa Villiers said: "The Parades Commission ruling and subsequent political developments today will provoke strong feelings from many in Northern Ireland, but it is essential that the rule of law is respected in any reaction to what has happened.
"The last thing Northern Ireland needs is any kind of public disorder which could put police officers at risk of injury or worse and which would damage Northern Ireland's reputation abroad and undermine efforts to attract jobs and investment."
Reacting to the walk-out, Sinn Féin deputy First Minister Martin McGuinness appealed for calm.
"This is a time for leadership and this is a time for people to stand together and send a very clear message that, whatever problems and difficulties there are, there can be no resulting to violence over the course of the next couple of weeks," he said.
"This is a time for steady leadership, for people to remain calm and remain absolutely peaceful, to abide by the Parades Commission determination and support the PSNI."
Alliance Justice Minister David Ford has said he is “horrified and disgusted” by the withdrawal of the DUP and UUP from all-party talks.
He branded the move “utterly irresponsible and disgraceful” and added: “They will inevitably escalate tensions over parading.”
According to Mr Ford, the unionist parties have shown that they were “never committed” to finding resolutions to long-standing issues.
SDLP leader Alasdair McDonnell said there was "a desperate need for people to keep calm".
He added that the public were actually ahead of the politicians in wanting to see the talks succeed.
"All of the parties need to get back in the room and talk it out; this is the only way of making progress," he said.
"One specific parade or one specific issue should not be allowed to derail the entire process that has the potential to resolve the outstanding challenges we face.
"This is a time for calm heads. If we have learned anything in 40 years, it is that you can make all the threats you like, you can destabilise what you like - but at the end of the day, you have to come back to the institutions. We need the institutions to hold our community together."
Further to the talks collapse, the meeting of the North-South Ministerial Council planned for Dublin on Friday has been cancelled after the DUP asked for a postponement until September.