Tarvitsemme tauon.

English Translation

We need a break.

“We need a break.”

Sentence is in present tense.

Yeah, in past tense it would use “tarvitsimme”.

Apparently, the english sentence was, and still is on tatoeba (Tarvitsemme tauon. - Finnish example sentence - Tatoeba), in the past tense. So the translation was indeed incorrect.