Police have clashed with protestors and fires have been seen in the streets, in the one of the country’s worst upheavals since the Arab Spring in 2011.
At least one demonstrator has been killed in the riots opposing soaring prices and tax hikes.
Teargas has been fired in a desperate bid to disperse crowds in the capital Tunis and the nearby small town of Tebourba, where the protestor was killed on Monday, according to eyewitnesses.
Police took to the streets in 20 towns and cities to try and control the violence on Tuesday night, and molotov cocktails were thrown at a Jewish school on the tourist island of Djerba.
No injuries were reported.
Protestors have also attacked police stations and government buildings.
Tunisia’s Interior Ministry said 237 people were arrested in Tuesday’s violence including two Islamists, while 50 police officers have been wounded.
Demonstrations have swept across the country after one small protest took place on Sunday.
Prime Minister Yousef Chahed has said the riots have descended into “acts of vandalism”, he added: “What happened is violence that we cannot accept.
“The state will remain steadfast.”
Mr Chahed is imposing austerity on Tunisia as part of a loan agreement with the International Monetary Fund.
Tax has risen on cars, phone calls and internet use, while the price of petrol has also soared.
The opposition Popular Front party is calling on the protests to continue on until the government’s 2018 budget has been repealed.
Chahed has said 2018 will be Tunisia’s “last difficult year” as he seeks to reduce the country’s deficit from 6% to 4.9%.
Tunisians have already been struggling with high unemployment and rising prices.
The situation is likely to intensify with a fall in the country’s currency.
Joblessness and poverty were two of the key factors behind the Arab Spring protests in the country in 2011.
Tunisia is widely seen as the only democratic success story among the Arab Spring nations, it has also had nine governments since then, none of which have been able to deal with growing economic problems.