We perform one of the first studies into the nonlinear evolution of tidally excited inertial waves in a uniformly rotating fluid body, exploring a simplified model of the fluid envelope of a planet (or the convective envelope of a solar-type star) subject to the gravitational tidal perturbations of an orbiting companion. Our model contains a perfectly rigid spherical core, which is surrounded by an envelope of incompressible uniform density fluid. The corresponding linear problem was studied in previous papers which this work extends into the nonlinear regime, at moderate Ekman numbers (the ratio of viscous to Coriolis accelerations). By performing high-resolution numerical simulations, using a combination of pseudo-spectral and spectral element methods, we investigate the effects of nonlinearities, which lead to time-dependence of the flow and the corresponding dissipation rate. Angular momentum is deposited non-uniformly, leading to the generation of significant differential rotation in the initially uniformly rotating fluid, i.e. the body does not evolve towards synchronism as a simple solid body rotator. This differential rotation modifies the properties of tidally excited inertial waves, changes the dissipative properties of the flow, and eventually becomes unstable to a secondary shear instability provided that the Ekman number is sufficiently small. Our main result is that the inclusion of nonlinearities eventually modifies the flow and the resulting dissipation from what linear calculations would predict, which has important implications for tidal dissipation in fluid bodies. We finally discuss some limitations of our simplified model, and propose avenues for future research to better understand the tidal evolution of rotating planets and stars. ; Comment: 17 pages, 17 figures, accepted for publication in MNRAS