What does a transformer do?
A transformer transfers power between two or more electrical circuits when each of those circuits is carrying an alternating electric current. Transfers of this sort are important because many electric power systems have incompatible circuits—one circuit may use large currents of low voltage electricity while another circuit may use small currents of high voltage electricity. A transformer can move power from one circuit of the electric power system to another without any direct connections between those circuits.
Now for the technical details: a transformer is able to make such transfers of power because (1) electric currents are magnetic, (2) the magnetic fields from an alternating electric current changes with time, (3) a time-varying magnetic field creates an electric field, and (4) an electric fields pushes on electric charges and electric currents. Overall, one of the alternating currents flowing through a transformer creates a time-varying magnetic field and thus an electric field in the transformer. This electric field does work on (transfers power to) another alternating current flowing through the transformer. At the same time, this electric field does negative work on (saps power from) the original alternating current. When all is said and done, the first current has lost some of its power and the second current has gained that missing power.