This is essentially an act of war. It calls for a break in diplomatic relations and cessation of trade and movement of persons between the two countries.
Germany gives billions in aid to Israel, on top of the Holocaust reparations that it's still paying.
Germany also gave Israel six nuclear-armed Dolphin submarines, paid for by German taxpayers.
The "trade" and "movement" between Germany and Israel is overwhelmingly to Israel's benefit. I doubt Israel would want to cut it off.