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An electric current always creates a magnetic field which loops around the current, and a change in the magnetism looping through a circuit generates a voltage in that circuit. So in a transformer, we apply power to one coil of wire, the primary, and the magnetic flux which this creates induces a voltage in the other coil(s), the secondary(s). But it only works while the magnetic field is changing, and so a transformer can only be used for AC, not DC.