The compiler suggests I add a 'static lifetime because the parameter type may not live long enough, but I don't think that's what I want

Check out the entire error:

error[E0310]: the parameter type `U` may not live long enough
 --> src/main.rs:9:24
  |
8 |     fn add<U: Bar<T>>(&mut self, x: U) {
  |            -- help: consider adding an explicit lifetime bound `U: 'static`...
9 |         self.data.push(Box::new(x));
  |                        ^^^^^^^^^^^
  |
note: ...so that the type `U` will meet its required lifetime bounds
 --> src/main.rs:9:24
  |
9 |         self.data.push(Box::new(x));
  |                        ^^^^^^^^^^^

Specifically, the compiler is letting you know that it's possible that some arbitrary type U might contain a reference, and that reference could then become invalid:

impl<'a, T> Bar<T> for &'a str {}

fn main() {
    let mut foo = Foo { data: vec![] };

    {
        let s = "oh no".to_string();
        foo.add(s.as_ref());
    }
}

That would be Bad News.

Whether you want a 'static lifetime or a parameterized lifetime is up to your needs. The 'static lifetime is easier to use, but has more restrictions. Because of this, it's the default when you declare a trait object in a struct or a type alias:

struct Foo<T> {
    data: Vec<Box<dyn Bar<T>>>,
    // same as
    // data: Vec<Box<dyn Bar<T> + 'static>>,
} 

However, when used as an argument, a trait object uses lifetime elision and gets a unique lifetime:

fn foo(&self, x: Box<dyn Bar<T>>)
// same as
// fn foo<'a, 'b>(&'a self, x: Box<dyn Bar<T> + 'b>)

These two things need to match up.

struct Foo<'a, T> {
    data: Vec<Box<dyn Bar<T> + 'a>>,
}

impl<'a, T> Foo<'a, T> {
    fn add<U>(&mut self, x: U)
    where
        U: Bar<T> + 'a,
    {
        self.data.push(Box::new(x));
    }
}

or

struct Foo<T> {
    data: Vec<Box<dyn Bar<T>>>,
}

impl<T> Foo<T> {
    fn add<U>(&mut self, x: U)
    where
        U: Bar<T> + 'static,
    {
        self.data.push(Box::new(x));
    }
}

asking me to consider adding a 'static lifetime qualifier (E0310). I am 99% sure that's not what I want, but I'm not exactly sure what I'm supposed to do.

Yes it is. The compiler does not want a &'static reference, it wants U: 'static.

Having U: 'static means that U contains no references with a lifetime less than 'static. This is required because you want to put a U instance in a structure without lifetimes.

trait Bar<T> {}

struct Foo<T> {
    data: Vec<Box<dyn Bar<T>>>,
}

impl<T> Foo<T> {
    fn add<U: Bar<T> + 'static>(&mut self, x: U) {
        self.data.push(Box::new(x));
    }
}