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Do they move the cargo into smaller vehicles to get into the city? Or schedule the deliveries for low traffic times? Or just say fuck it and head into traffic?
All of the above to certain degrees. If the roads, bridges, tunnels, etc can handle an 18 wheeler, they'll go. There is a lot of dropping a trailer at a yard to be unloaded into smaller trucks happening as well.
Here's an example I've see. You can bring a semi trailer into Manhattan via George Washington Bridge. You can't take it onto the FDR Drive or the Westside Highway, but you can take it on the streets. Madison Square Garden and the Jacob Javett's center get big shows in and out all the time.
The Bronx Terminal Market gets produce, meat, and fish delivered from all over. Semis and smaller vehicles come in and out all the time.
Semis are a common sight in the city, as are giant cranes and other oversize vehicles. It just requires a bit of skill and determination to do it.