Home states:
Merkel: She comes from one of the poorest places in the former GDR (Meckelenburg-Vorpommern). So my guess is some poor state in the American South, as they are quite distinct and generally poorer than the rest of the US, just like former East Germany. Mississippi?
Schulz: He is from a large state in an industrial area, that isn't too badly off. (Nordrhein-Westphalen). Pennsylvania? An industrial state (part of the Rust Belt) that is still more or less on the US average for how rich it is.
Election result:
Merkel wins a landslide just like she will in Germany. She is more or less a moderate while Schulz is probably too far left for the US.
President Angela Merkel (R-MS): 377 EVs (55%)Ambassador to Germany Martin Schulz (D-PA): 161 EVs (43%)