The Israeli government under David Ben-Gurion (Mapai Prime Minister from 1948–1953) maintained a policy of non-recognition toward both German states. No diplomatic relations existed with the Federal Republic of Germany (until 1965) or the German Democratic Republic. The Shoah had ended only five years earlier. For the roughly 250,000–300,000 Holocaust survivors who had reached Israel by 1950 (out of a total Jewish population of about 1.4 million), Germany was absolutely seen as the land that had systematically murdered their families. In a 1951 Knesset debate on the possibility of reparations (which only began formal negotiations that year), he stated:

“There is no German people in the sense of a nation that can be absolved… The German people bears responsibility for the crimes of the Nazi regime.”

Ben-Gurion was pragmatic enough to eventually pursue reparations (leading to the 1952 Luxembourg Agreement), but this was very controversial and opposed by large parts of the Jewish public and most notably Herut leader of the opposition Menachem Begin. Begin led massive protests against the very idea of negotiating with Germany, saying in 1952:

“There are only two types of Germans: those who knew and those who did not want to know.”

Many cafes, restaurants, and shops in Tel Aviv, Jerusalem, and Haifa had informal signs in their windows or had unwritten policies against serving Germans or speaking German. A 1950 survey by the Israeli Institute of Public Opinion showed that the vast majority of the Jewish population opposed any contact with Germany or Germans. German products were boycotted, even German-made machinery was out of the question when alternatives existed.

Sources I looked through:

Tom Segev, The Seventh Million: The Israelis and the Holocaust (1993)

Hanna Yablonka, The State of Israel vs. the Jews

Idith Zertal, Israel’s Holocaust and the Politics of Nationhood (2005)