How to stop my dog from acting aggressively towards other dogs?

My dog is an 8 year old terrier mix and about 40 lbs. (for context I also have another elder dog that's a 12 year old lab female thats 60 lbs and they get along Great.) anyway my 8 year old dog is is constantly barking at the fence with my neighbors dogs. And when I walk him and there's another dog in... show more My dog is an 8 year old terrier mix and about 40 lbs. (for context I also have another elder dog that's a 12 year old lab female thats 60 lbs and they get along Great.) anyway my 8 year old dog is is constantly barking at the fence with my neighbors dogs. And when I walk him and there's another dog in sight, He's barking, pulling on the leash, and lunging. Up until this point I wasn't too concerned with this problem until one day when I was walking my dog, a pit bull got out of its house and came charging towards my dogs. As you would expect my Male dog barked and lunged at the dog. I called for both of my dogs and only my female dog came behind me. (Since my dog was on his leash he was about a 3 feet away from me.) when the pitbull and my dog got close they began to sniff each other. My dog barked and immediately my dog's neck was in the pitbulls mouth. My Male dog began to scream In the most horrific way (we've run into big dogs before, but this is the first dog that has bit back.) a man (from inside the house) and his teenage son who left the door open had to punch their dog To get it unlatched from my dogs neck. There was a lot of blood (mostly from their dog) and my dog had a puncture wound on his neck. He's fine now and everything is back to normal, but It was a traumatizing experience. Even after that my male dog does not seem to have learned his lesson. What can i do to avoid this in the future?
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