Kaiju = "Strange Beast" the most famous Kaiju is Gojira (Godzilla) has played the roles of hero, villain, and force of nature in the course of his existence, one of the few Kaiju of any type to be depicted in multiple roles and having those around him react in different ways, depending on how the creature itself was being presented in the films.
Mecha = Mecha typically does not refer to form-fitting garments such as the Iron Man powered armor. Mecha tend to be much larger and bulkier than the wearer and the wearer's limbs may or may not actually extend completely into the respective limbs. In most fiction in which they appear, mecha are fighting machines: essentially armored fighting vehicles with a body instead of a vehicular frame.
Some robot mecha are capable of transformation (Macross, Zeta Gundam) or combining to form even bigger ones (Beast King GoLion and Tengen Toppa Gurren Lagann). Go Nagai is also often credited with inventing this in 1974 with the television series Getter Robo.
Not all mecha need be completely mechanical. Some have biological components with which to interface with their pilots, and some are partially biological themselves, such as Neon Genesis Evangelion, Eureka Seven, and Zoids.