The Biden Administration is advancing the toughest-ever proposed limits on tailpipe emissions from cars, SUVs, vans and pickup trucks, an expected move that brought cheers from environmental policy-setters and prompted others to warn vehicle prices would rise in response.

The proposal announced Wednesday from the Environmental Protection Agency increasingly raises restrictions each year on tailpipe emissions of carbon dioxide, smog-forming nitrogen oxide and other pollution from vehicles for model years 2027 through 2032….